Government Expects Japan's Economy to Grow
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Japan's economy will likely expand 1.6 percent in the fiscal year starting in April, slower than the expected pace for the current fiscal year because of dwindling capital expenditures and housing investment, the government said Monday.
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Japanese firms continue to spend on new equipment and production plants, a survey finds, underlining a continuing recovery in the world's second-largest economy.
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Japanese stocks rose after US President George W. Bush won a second term, boosting optimism that the world&#39;s largest economy will sustain its growth.
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The Japanese government downgraded its  view on the economy slightly on Tuesday, citing weaker exports  and output, but it said a recovery was continuing due to steady  domestic demand, in terms of both personal consumption and  capital spending.  "The economy continues to recover, while  some weak movements have been seen recently," the government  said in its monthly economic report.
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Japan&#39;s central bank yesterday predicted the economy would shift into inflation for the first time since 1997 during the next fiscal year, though it strongly signalled that this would not trigger a tightening of monetary policy.
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Japan issued mixed economic data Tuesday in government figures for jobs, spending and sales in December, and officials responded cautiously amid other signs economic growth is slowing.
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Japan's central bank decided Wednesday to keep its monetary policy steady, in a sign that officials consider the nation's delicate recovery still on track.
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The front-runner to become Japan's next prime minister vowed Saturday to extend his nation's support for U.S.-led operations in Afghanistan.
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Japanese stocks rose on Tuesday on expectations that a Government report later today would provide further evidence of strength in the world&#39;s second-largest economy.
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Japan's economy outperformed both the United States and the euro zone in January-March for the second straight quarter, reinforcing expectations the Bank of Japan will raise rates in August.
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Japan&#39;s stock benchmarks gained after a government report showed industrial production rose for the first month in three, prompting optimism economic growth will be sustained.
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Japanese Prime Minister Shinzo Abe has vowed to create a leaner government and foster innovation to pilot the debt-laden economy through threats posed by the shrinking and aging population.
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Japan saw its economy grow at a faster pace than  expected in the three months to June, officials figures show.
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Economic reform may test Prime Minister Shinzo Abe's agenda.
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The Japanese government downgraded its view on the economy slightly on Tuesday, citing weaker exports and output, but it said a recovery was continuing due to steady domestic demand, in terms of both personal consumption and capital spending.  "The economy continues to recover, while some weak movements have been seen recently," the government said in its monthly economic report.
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The Japanese government says deflation is being brought under control, despite predicting that economic growth will slow during the next fiscal year.
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Just the 30th favorite nation to visit, Japan hopes to boost tourism â and the economy.