Japan will see the end of deflation and achieve slight positive growth in fiscal 2003, when the government's structural reform programs and the Bank of Japan's credit-easing steps begin to take effect, a key government panel said Friday.
The Council on Economic and Fiscal Policy, which is chaired by Prime Minister Junichiro Koizumi, said in a midterm fiscal and economic report that consumer and wholesale prices will rise in fiscal 2003.
The economy will return to steady, private sector-led growth in fiscal 2004 if the ongoing structural reforms pursued by Koizumi fully take effect, according to the report.