"Though Kuroda has pledged to achieve 2 per cent inflation, given Japan's reality, this is an extremely tough goal"
- Shinzo Abe, Japan's Prime Minister
The world's third largest economy is expected to return to growth this year and expand by 1.2%, helped by bold measures introduced by Haruhiko Kuroda and Shinzo Abe, the Asian Development Bank forecasts in a report released Tuesday. Moreover, the ADB projects Japanese economy to accelerate in 2014, with gross domestic product growing 1.4%. The Asian Development Outlook 2013 appreciated Japanese Prime Minister Shinzo Abe's ‘Abenomics' economic policy, which integrates monetary easing measures by the Bank of Japan led by the newly-appointed Governor Haruhiko Kuroda. Earlier this month, Shinzo Abe has for the first time suggested the possibility that the Japanese economy could struggle to achieve the ambitious target of 2% inflation within two years in case the global economy continues decelerating.
"Though Kuroda has pledged to achieve 2 per cent inflation, given Japan's reality, this is an extremely tough goal" and Abe is aware of that, said Mikihiro Matsuoka, chief economist at Deutsche Securities Inc. in Tokyo. "Under the target, the BOJ will keep expanding stimulus and its actions will help to weaken the yen, boost profits and stimulate economic growth - that's what Abe may want to see ultimately."
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