World Economy

Japan Growth Outlook Cut

Japan Growth Outlook CutJapan Growth Outlook Cut

Goldman Sachs Group Inc. cut its forecast for Japanese growth as consumers remain shy about spending six months after a sales tax increase. The economy may expand 0.1% in the fiscal year ending March 2015, compared with a previous forecast of 0.3% growth, Bloomberg quoted Tokyo-based economists Naohiko Baba and Yuriko Tanaka as saying. The economy will expand 2.9% in the current quarter, less than a previous forecast of 3.8%, they said. Japan’s recovery is being hampered by a protracted slump in sentiment following the tax bump in April, highlighting the challenge faced by Prime Minister Shinzo Abe and Bank of Japan Governor Haruhiko Kuroda.