The Cabinet Office on Friday reversed its economic projection for fiscal 2001 from growth of 1.7 percent to a 0.9 percent contraction in real gross domestic product, marking the bleakest outlook in the postwar period and the first forecasted shrinkage since 1998.
The office also reversed the outlook for nominal GDP, which is not adjusted for inflation, from growth of 1 percent to a 2.3 percent contraction, also the dreariest postwar forecast.
In nominal terms, it will be the fourth straight year of contraction, making it the nation's longest period of economic retreat.
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