The government on Thursday upgraded its growth forecast for the domestic economy in fiscal 2022 to a real 3.2%, from the previously estimated 2.2%, expecting the pace of recovery from the coronavirus pandemic-caused slump to pick up following a weaker-than-anticipated improvement in the current year.
The projected pace of growth in gross domestic product, the total value of goods and services produced in the nation, will be used as the basis for the government's tax revenue estimates as it draws up the draft budget for fiscal 2022 starting April, which Prime Minister Fumio Kishida's Cabinet is set to approve on Friday.
The initial budget is expected to total around ¥107.6 trillion — a record high for the 10th straight year — according to government sources.