Bank of Japan upgrades economic outlook

0 Comments | AFP, April, 2006

TOKYO (AFP) — Japan's economy is enjoying a steady recovery with deflation easing, the central bank said, as it upgraded its outlook to show growth of 2.4 percent in the year to March 2007.

Growth is expected to slow slightly to a rate of 2.0 percent the following year, the Bank of Japan said in its twice-yearly economic outlook report.

Consumer price inflation is expected to pick up to an annual pace of 0.6 percent in the year to March 2007, accelerating to 0.8 percent the following year, the central bank said.

Over the next two years, "Japan's economy is likely to experience a sustained period of expansion, with domestic and external demand and also the corporate and household sectors well in balance," it said.

The central bank also vowed to...