Japan to revise wage calculation in GDP; likely also to revise budget based on data errors

Tokyo

JAPAN'S government said on Friday it will amend the calculation of workers' compensation in the nation's gross domestic product (GDP) and probably revise its draft budget after it understated wages data for more than a decade due to faulty polling methods.

The revisions are not expected to change the pace of economic growth. All the same, it is an embarrassment for Prime Minister Shinzo Abe, because his government has enacted several policies to eliminate the risk of deflation by encouraging wages to rise.