The projection was 1.1 per cent in the July forecast.
But the government also cautioned about downside risks from an overseas market fluctuations, economic slowdown, supply bottlenecks and inflation.
The government estimate showed the size of nominal GDP will likely reach 560.2 trillion yen ($4.25 trillion) in this fiscal and 571.9 trillion yen in the next, to hit new records for two consecutive years, exceeding the pre-pandemic level seen in 2019.
The overall consumer price index (CPI) forecast for the next fiscal was left unchanged at an 1.7 per cent increase from the July projection, Japanese media outlets reported.
Due to a bigger-than-expected decline in overseas demand, the government cut its growth to an 1.7 per cent expansion for the current fiscal from a 2 per cent rise projected in July.
It raised its consumer inflation forecast to a 3 per cent increase from 2.6 per cent seen in July.
Fibre2Fashion News Desk (DS)