The government on Tuesday cut its domestic growth forecast for fiscal 2019, citing weaker than expected capital spending amid a slowdown in the global economy.
The Cabinet Office said gross domestic product, the total value of goods and services produced in the country, is expected to grow 1.3 percent in real terms in the year ending March 2020, a downgrade from the July forecast for 1.5 percent growth.
The projection will be used as the basis for the government's tax revenue estimates as it compiles the budget for the year ending March 2020. Prime Minister Shinzo Abe's Cabinet is slated to approve a draft of the budget Friday.