Tokyo, Dec 22 (IANS): The Japanese government on Thursday revised upward its economic growth forecast for fiscal 2023 to a real 1.5 per cent on expectations for increased capital spending and private consumption.

The upwardly revised forecast is a 0.4-point increase from the government's previous projection of a 1.1-per cent growth made in July, reports Xinhua news agency.

According to the Cabinet Office, GDP in fiscal 2023 (April 2022-March 2023) is now forecast to reach 558 trillion yen ($4 trillion), surpassing fiscal 2018's record of 554 trillion yen.

From the previous fiscal year, the office said that nominal GDP is also forecast to hit a new high of 571 trillion yen , marking an increase of 2.1 per cent.

With real wages expected to rise, the government said it projects private consumption, which accounts for more than half of the economy, to increase 2.2 per cent in fiscal 2023.

In addition, it expects businesses to spend more with a 5 per cent rise in capital spending projected, while private investment is forecast to rise owing in part to the government's 29.1-trillion-yen stimulus package aimed to help counter rising prices.

The government also said it expects the Japanese economy to be bolstered by exports increasing by 2.4 per cent looking ahead, while imports are projected to rise by 2.5 per cent.

The government's GDP forecast for the current fiscal year was revised downwardly, however, from 2.0 per cent to 1.7 per cent, owing to the impact of surging prices for energy and food.