The Japanese government forecasts the country's economy will grow over 2 percent next fiscal year.

The Cabinet gave the projection for fiscal 2012, starting next April. A 2.2 percent growth is estimated in real terms, when price changes are excluded.

The forecast is based on increased demand for post-disaster reconstruction and related job creation.

The government also expects a moderate increase in personal consumption. This is due to incentives for eco-friendly spending, such as home renovations and fuel-efficient cars. These measures are to be put into an extra budget for fiscal 2011.

For fiscal 2011, it says the economy will shrink by 0.1 percent due to the March disaster and the strong yen.

Source: http://www3.nhk.or.jp/daily/english/20111222_35.html

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