The government is expected to set its fiscal 2004 economic growth projection at 1.8 percent in real terms and 0.5 percent in nominal terms, official sources said Wednesday.
The growth rates will serve as the basis for the government's compilation of the state budget for the fiscal year starting in April.
The rates are expected to be approved at a Cabinet meeting Friday.
The government believes Japan will achieve stable economic growth in fiscal 2004, because an expected expansion of the world economy will help underpin Japan's exports, thereby boosting corporate earnings and manufacturers' capital investment, the sources said.
While the 1.8 percent growth rate projected for fiscal 2004 is lower than the 2.1 percent estimated for fiscal 2003, the economy will probably continue to follow a moderate growth path in the next year, the sources said.