Yukihiko Ikeda, policy affairs chief of the ruling Liberal Democratic Party, expressed confidence Friday that the economy will log growth of about 1 percent in the next fiscal year.
He made the remark during his meeting with Stanley Fischer, first deputy managing director at the International Monetary Fund, who said the IMF may revise downward its earlier estimate of 0.5 percent growth for Japan's economy in 1999.
Ikeda, however, said he is confident the planned implementation of a series of stimulus measures will lift the nation's economy.
During Thursday's meeting with Finance Minister Kiichi Miyazawa, the IMF's No. 2 man urged Japan to implement the new bank-bailout package and nurse Japan's financial system back to health. He also voiced hope that Japan will continue taking fiscal steps this year and next year to stimulate the economy, according to the ministry official.
Miyazawa briefed Fischer on the Japanese government's plan to form a third supplementary budget for fiscal 1998, which ends March 31, and to carry out sizable tax cuts starting next year, the official said.
Turning to Indonesia's economic conditions, Fischer was quoted as saying he is happy with the rupiah's recent recovery, saying a stronger rupiah is conducive to resolving Indonesia's huge private-sector debt issue.
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