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Economy

Despite hiccup, Japan's economy seen returning to growth

US tax cuts provide a boost but risk of trade frictions remains

Cars awaiting export in Yokohama. Trade frictions could negate greater foreign demand for Japanese goods stemming from U.S. tax cuts.   © Reuters

TOKYO -- Overseas factors will play the key role in Japan's economic growth in fiscal 2018, with U.S. tax cuts promising to grease the recovery's wheels and risks like trade frictions threatening to slam the brakes.

The economy will post real growth of 1.1% in the current fiscal year, according to the average estimate of 10 private economists. Spending on labor-saving technologies and other capital investment is expected to grow.

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