Japan's GDP to rise 1.1%

TOKYO (AFP): A Japanese research institute said yesterday it raised its forecast for Japan's gross domestic product (GDP) to 1.1 percent in the year to March from the previous estimate of 0.5 percent.

Sanyo Investment Research Ltd., a research unit of Sanyo Securities Co. Ltd., said the upward revision was due to recovery in consumer spending on the back of income tax cuts and a sharp rise in exports to Asia.

Corporate capital spending is likely to continue to shrink from previous year levels, the institute said.

The institute forecast a 1.9 percent growth in GDP for the year to March 1996. It forecast an average yen rate of 102 to the dollar in the year to March 1995. The yen averaged 107.79 yen to the dollar in the year to March 1994.