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(Xinhua)
Updated: 2007-12-19 20:43

TOKYO -- The Japanese government said on Wednesday that Japan's economy is to post a real growth of 2.0 percent in fiscal 2008 starting next April.

According to a government report approved at a Cabinet meeting, the expansion in nominal terms measured by gross domestic product is to be at 2.1 percent for the next fiscal year, outnumbering the real growth rate for the first time in 11 years.

Experts said the 0.1 percent excess indicates that the Japanese economy may finally go out of deflationary pressures.

"In fiscal 2008 the Japanese economy is expected to grow driven by private demand under price stability, against the background that the corporate sector will remain solid and the household sector will improve moderately," the report said.

It predicted a continued growth in overseas economies in the next fiscal year, but warned of possible fluctuations stemming from the US supreme mortgage crisis and rising oil prices.