Japanese Government downgrades growth amid twin disasters

| April 13, 2011 | 0 Comments

Following the 8.9 magnitude earthquake and tsunami on 11 March, the Japanese Government has today downgraded its growth forecast for the economy.

The twin disasters have caused billions of pounds worth of damage and is set to impact on the country’s economic growth.

As a result, the Japanese Government has downgraded its assessment of the economy and said core areas, such as industrial production and exports, will suffer as the nuclear crisis continues following the disasters.

The Government’s review comes shortly after the International Monetary Fund (IMF) downgraded its growth forecast for Japan to 1.4% from 1.6% for the 2011 year.

In its monthly economic report, the Government said: “The economy is showing weakness recently due to the influence of the Great East Japan earthquake.

“It remains in a severe condition.”

The assessment and downgrade comes as the economy is already losing momentum. It continues to battle with deflation, while its debt currently stands at almost twice the country’s annual economic output and is the highest of any industrialised nation.

According to analysts, the catastrophes have hampered the economy and the recovery could take even longer.

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