Govt FY2022 estimates GDP growth 2.0
Govt FY2023 sees GDP growth 1.1
Overall FY2022 consumer inflation forecast at 2.6

TOKYO, July 25 Reuters Japan39;s government slashed its economic growth forecast for this fiscal year largely due to slowing overseas demand, highlighting the impact of Russia39;s war in Ukraine, China39;s strict COVID19 lockdowns and a weakening global economy.

The forecast, which serves as a basis for compiling the state budget and the government39;s fiscal policy, included much higher wholesale and consumer inflation estimates as surging energy and food costs and a weak yen push up prices.

The world39;s thirdbiggest economy is now expected to expand about 2.0 in priceadjusted real terms in the fiscal year ending in March 2023, according to the Cabinet Office39;s projections, presented at the Council on Economic and Fiscal Policy the government39;s top economic panel.

That marked a sharp downgrade from the government39;s previous forecast of 3.2 growth released in January. The cut largely stemmed from weaker exports, which the government expects to expand 2.5 compared to 5.5 in the previous assessment.

The government projected 1.1 growth for the following fiscal year starting April 2023.

It released its projections days after the Bank of Japan downgraded expectations for growth for this fiscal year to March 2023 to 2.4 from 2.9 three months ago, and underscored the central bank39;s stance to maintain massive stimulus even as several other…