The government on Monday sharply raised its forecasts for economic growth in fiscal 2013 to 2.5 percent and 2.7 percent in real and nominal terms, respectively, predicting that the stimulus package will spur domestic demand as the global economy bounces back.
The consumer price index is likely to gain 0.5 percent in fiscal 2013, marking its first rise since fiscal 2008, following a 0.1 percent decline estimated in fiscal 2012, the government said.
Economic and fiscal policy minister Akira Amari said at a press conference that the forecasts "can be achieved" because the stimulus package, worth ¥20 trillion, is expected to begin producing results over the next year or so.