Japanese Economics Minister Lowers Growth Outlook
Japan’s economics minister said Tuesday the country’s growth is likely to slow to as low as 0.6 percent this current fiscal year, modifying a more upbeat forecast he had given just a week ago.
Citing power supply constraints and deterioration in consumer and business confidence following the March quake, Kaoru Yosano lowered Japan’s growth forecast from the previous one percent.
The revised 0.6 percent forecast is in line with the outlook given by the Bank of Japan last month, which also revised down its previous 1.6 percent growth projection.
The Japanese government’s official projection currently stands at 1.5 percent growth for the current fiscal year that started in April, but the figure is expected to be revised in coming months.
Japan’s economy grew 2.3 percent in the last fiscal year.
Meanwhile, Japanese media said Japan’s trade balance in April dipped $8.5 billion into the red, posting the largest deficit since the financial crisis.
The trade numbers are due to be released Wednesday.