Poll finds short term confidence in the Japanese economy

Despite the recent surge in the yen and sharp fall in Tokyo shares, a Reuters poll has found that investors think the Japanese economy will grow by 2.8 per cent this fiscal year (which started in April), up from the 2.4 per cent predicted last month and the highest since March 2012.

Prime Minister Shinzo Abe’s planned aggressive monetary policy will be behind the change, while a pick-up in global demand should aid exports, say respondents.

However, the forecast for growth in the next fiscal year is much weaker, at 0.5 per cent expansion – unchanged from last month. In addition, inflation as measured by the consumer price index is projected to be up 0.3 per cent this fiscal year – compared to the 0.7 per cent predicted by the central bank.