Japan's economy is expected to shrink this year because of the strong yen and Europe's debt crisis but rebound by a real 2.2 percent in fiscal 2012, the government said in a downgrade of its economic forecasts Thursday.
The Cabinet of Prime Minister Yoshihiko Noda approved the revised estimates while projecting Japan would log a trade deficit for fiscal 2011, see employment rates stay above 4 percent, and watch consumer prices turn positive in the next business year.
As measured by real, or inflation-adjusted, gross domestic product, the economy will shrink 0.1 percent in fiscal 2011, the Cabinet Office said, downgrading its August forecast of 0.5 percent growth.