Total output for 2004 output is forecast at 20.3 trillion yen (188 billion dollars), up from an estimated 19.1 trillion yen in 2003, when output grew 5.8 percent after a 12.0 percent drop in 2002, the Japan Electronics and Information Technology Industries Association (JEITA) said in a statement.

"The favorable demand environment stimulated by digital equipment such as flat-panel televisions and DVD recorders is expected to continue into 2004," JEITA said.

"The opinion has been expressed that Japan's economy will slow down in the second half of the coming year but domestic production of electronics and IT products is forecast to expand for the second consecutive year," it said.

In the consumer electronic equipment segment, production of audio and other basic equipment continues to shift overseas but domestic output is expected to expand owing to demand for high-tech products, such as DVD recorders, digital cameras and car navigation systems, it said.

SPACE.WIRE