THE CURRENT Japanese economic growth forecast of 1.9 per cent in fiscal 1998-99 is unrealistic and will have to be revised downwards according to Taichi Sakaiya, the newly appointed head of the Economic Planning Agency. "I want to revise the estimate, but because it is a politically sensitive issue I am concerned about the timing," he said on Japanese TV.
The new government is also planning to freeze a law that limits its options for deficit financing to 3 per cent of GDP by 2006. The freeze could be introduced at the start of the next session of parliament in January.
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