BOJ may revise real GDP growth to zero for FY08

Written by Writer on Friday, October 24th, 2008

BOJ may revise real GDP growth to zero for FY08

The Bank of Japan is discussing revising the expected growth rate of real gross domestic product in fiscal 2008 downward from 1.2 percent, predicted in July, to zero percent, The Yomiuri Shimbun learned Friday.

The revision is being posited due to negative impacts on the country’s economy as a result of the rapid appreciation of the yen and falling stock prices. For fiscal 2009, it is highly likely the central bank will predict a flat real GDP growth rate.

The bank’s growth rate prediction for the real GDP will be released next Friday in a report on mid- and long-term forecasts for the country’s economy. The prediction is made by the eight members of the central bank’s Policy Board, including the governor and deputy governors.

Officials of the bank have been increasingly worried that the U.S. and European economies are slowing down. They also are concerned that the growth of economies in emerging countries is leveling off.
(Oct. 25, 2008)