Tokyo, Jan 24: Japan's cabinet approved government economic forecasts on Friday for the fiscal year ending in March and the following year, when real growth is expected to remain below one per cent. The government forecast the economy will post real growth of 0.9 per cent for fiscal 2002/03 and 0.6 per cent in fiscal 2003/04.
The figures were initially released in December and had already been informally approved by the cabinet.

The government also kept up its pressure on the Bank of Japan, calling on the central bank to work with it to overcome deflation "by realising positive changes in prices as quickly as possible". The government has begun using that phrase recently to indicate it is giving priority to tackling deflation, which has been hobbling the economy for over three years.
Some government officials and politicians have pressed the central bank to adopt an inflation target to stem persistent declines in prices.
But Prime Minister Junichiro Koizumi has declined to be drawn into that debate, saying the central bank is already aware of the need to end deflation. Bureau Report