The Japanese government forecast on Saturday that the country’s real gross domestic product will grow by 1.4 percent for the fiscal year starting March 2014, slowing from an expected 2.6 percent growth for the current year as a planned sales tax increase is seen dampening consumption.
The forecast is part of the annual budget review. The government projects about 50 trillion yen ($480.33 billion) in tax revenue for the coming fiscal year based on the growth forecast.
While the higher sales tax is expected to curb consumption, the government expects positive economic growth thanks to the effects of a fiscal and monetary stimulus.
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