Japan's economy forecast to grow 2.5% in fiscal 2013

this is possible. Well for those salarymen (including foreigners) in Japan, take a closer look to your pay slip given Friday last week (January 25). Your income tax is defintely higher than the previous month by 2.5%

From January 25, 2013 until Dec 25, 2037, all income tax payers salary in Japan will be deducted by additional 2.5% as an addtional income tax contribution to the Economic Recovery of the Tohoku regionss due to the Tohoku Great Earthquake (3/11/2010) and additional support for the economy.

Although 2.5% increase in income tax does not necessarily translate to 2.5% GDP growth, it will stabilize and insulate Japan from external forces such as Euro/Greek crises etc.

Is this really what they forecast or is this what Abe is telling the BOJ to forecast?

The extra 2.5% income tax is quite a bit of money. What I'm hoping for is that it actually goes to Tohoku reconstruction. As it is now, they have had a dismal record of money reaching the people who are suffering.

First off, this is the cabinet's estimate, so it is completely biased and poliical. Second, they had to up the estimate, as they just approved a JPY 20 trillion stimulus package which is likely to add even more debt to the already staggering level. Finally, the LDP wants to gain a super-majority in the Upper House elections this summer, so they are trying to sway voters. If this Vegas and 2.5% was the over/under, I'd bet th ranch on under.

All taxes will slowly trend upward in Japan. Insurance and utilities already high and are on the same upward trend-Japan is becoming less productive and more debt ridden......

I believe in my country.

I see the yen is going back in the right direction again.