The government reported on real GDP

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Eddy minus 1.3% and government economic outlooks 2009/4/28 of commodity price the greatest downfall and approaching deflation Http://www.business-i.jp/news/sou-page/news/200904280098a.nwc

Executive summary of http://www.business-i.jp/news/sou-page/news/200904280098a2.jpg government economic outlook

The government reported on real GDP (gross domestic product) growth rate in fiscal year 2009 of the 27th and it reported on the change to a lower level lingua economic outlook to the extraordinary cabinet meeting drastic. The consumer price index (synthesis) becomes the range of reduction of the the greatest with the minus 1.3% besides dropping to the worst level the preceding fiscal year proportion minus 3.3% and after the war as for the growth rate in the past, too.
Shape to perceive existence of risk of deflation that price plunge and economy narrow.

The amendment was done through necessity though 0.0% of the government was a growth rate of the GDP by the dissemination lingua economic outlook last December. The amendment's at the time of of April exceptional, and falling below fiscal year 1998 (minus 1.5%) almost became certain. It changes from the minus 0.8% to the minus 3.1% the results expectancy in fiscal year 2008, and it becomes negative growth 2 years in a row.

As for attention, the consumer price index in fiscal year 2009 was expected the downfall of 1.3%.
The minus becomes a the greatest as a rate of decrease after an interval of four years in the past. The executive of Cabinet Office「Demand is weak as a whole. Deflationary concerns are noted. 」It speaks.  

In the most much fear of governments, the price plunge and the recession are recrudescences of "Deflation spiral" that simulataneous progress. The perception of changing to the minus after an interval of 18 months of the nationwide consumer price index in March made public at the end of this week becomes strong among economists.

The GDP pushing up effect : by about 0.2% though the government included the supply of flash benefit money in the additional budget to rouse consumption in fiscal year 2008. Moreover, the pushing up effect of about 0.2% in total is expected in the spread promotion plan etc. of the eco-friendly car reduction of taxes and the energy saving consumer electronics that is the eyeball of economic measures.

However, the raw material that corporate results improve is scarce, and there are a lot of "The effect is limited" (private economist) and skeptic voices of employment and the pay situation only under the situation in which single-minded of progression of the disease is traced in the marketplace.

If the domestic demand was not good, the difficulty of the management reconstruction of the U.S. car major and the disposal of bad loans of the Europe and America financial institution was enumerated in the interview on the 27th, and the Kaoru Yosano financial affairs, finance, and state minister for economic and fiscal affairs showed "(Japanese economy) The downside risk was not a domestic factor but a perhaps overseas factor" and the caution though the request was a foreign demand. If the Europe and America economy drops further, export and the recovery in production of Japan become distant further, and achievement becomes difficult even as for the outlook of the minus 3.3%. 

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