Japan's projects 1.4% economic growth in 2014

Japan's economy will grow 1.4% in fiscal 2014 on the back of healthy domestic demand, amid inflation of 1.2%, excluding the effects of the consumption tax hike in April, the government projected. The government's growth projection in real terms compares with estimated growth of 2.6% in fiscal 2013, indicating that the world's third-biggest economy will stay on the recovery path despite fears that the 3-point hike in the national sales tax to 8% on April 1 would stifle consumer spending and investment. The government's price projection also signals a possible end to nearly two decades of deflation under the Bank of Japan's ultra-easy monetary policy.