Minister of Economy, Trade and Industry Toshimitsu Motegi indicated at a news conference on Jan. 5 that the mid- and long-term economic growth rate outlook will be revised in light of the plan to set a new fiscal restructuring target. There is criticism that the projected economic growth rate being used at present is too high. The Ministry of Economy, Trade and Industry (METI) will come up with a more realistic figure before the end of this month.

Motegi said: “The projected growth rate will be revised to better reflect reality based on economic trends, current economic conditions, interest rate movements, and so forth.”

The government has given up on its goal of achieving a primary balance surplus by 2020 and is aiming at setting a new target date by June. The economic growth rate projection will be revised in time for this.

The government’s outlook for the primary balance is currently calculated based on the assumption that the Japanese economy achieves an annual nominal growth rate of at least 3% from FY19. However, nominal growth rate for FY16 was only 1.0%, so this projection is deemed to be too optimistic.