The Japanese Cabinet Office submitted its latest medium-to-long term economic and fiscal projections:

• Inflation seen reaching 2% during fiscal year 2023 in its most optimistic scenario (previously fiscal year 2022)

• Real growth reaching around 2%, nominal growth about 3.2% to 3.4% over the medium-to-long-term under most optimistic scenario

• Inflation is not seen reaching 2% through fiscal year 2028, will hover below 1% in baseline scenario

• Real growth reaching a little over 1%, nominal growth about 1.2% to 1.5% over the medium-to-long-term under baseline scenario

• The government cites current lower levels of inflation as a reason for the delay under its most optimistic scenario. 

• As for growth projections, the baseline scenario also saw a downgrade in nominal growth as January projections had it pinned for about 1.5% to 1.7% over the medium-to-long-term.