NIPPON


 

World Bank Deputy Chief Economist Ayhan Kose has said that the Japanese economy is expected to "deliver healthy growth" over the next two years driven by increased consumption backed by rising wages.

He also indicated that there is room for the Bank of Japan to raise interest rates.

In its economic forecast released Thursday, the World Bank predicted Japan's gross domestic product will grow a real 1.2 pct in 2025 and 0.9 pct in 2026.

In an interview with Jiji Press, Kose pointed out that "when wage growth surpasses inflation in real terms, obviously, the income earners are going to be in a better position to spend." That could in turn lead to "better growth outcomes," Kose also said.