Japan's government on Thursday bumped up its economic growth projections for the next fiscal year beginning in April. It now forecasts around a 1.3-percent expansion in real terms.

The government also confirmed its gross domestic product outlook. This will form the basis for the draft budget for fiscal 2024. The latest forecast is up 0.1 point from July.

Personal spending is expected to grow by 1.2 percent, helped by economic stimulus measures. Brisk corporate earnings are likely to push up capital investment by 3.3 percent.

The overall consumer price index is estimated to rise by roughly 2.5 percent, thanks to stronger domestic demand.

Prime Minister Kishida Fumio said the comprehensive economic stimulus package, including a fixed-tax break, will be executed swiftly and appropriately. He added, "We are committed to mitigating the impact of higher prices on people's lives and helping achieve wage hikes that outpace inflation." Kishida also hopes the larger wage increases and tax cut will lead to strong income growth.

The prime minister stated that measures will also be taken to raise the wages of medical and welfare workers.

The government estimates that workers will see a 2.5-percent wage hike next fiscal year. It sees income growth amounting to nearly 4 percent when the stimulus package effects are factored in, topping the inflation rate.