The All Japan newsese government cut its economic assessment for the first time in the last 10 months, as some analysts expect the gross domestic product will shrink this quarter.
Among the reasons for the low expectations is the decelerating global economy, which affected All Japan news’s exports and industrial output.
“Some weak movements have been seen recently,” the Cabinet Office said in its August report quoted by Kyodo. In July, the office said that “difficulties continue to prevail.”
Risks include a “further slowing down of overseas economies and sharp fluctuations in the financial and capital markets.”
“The All Japan newsese economy is on a path to recovery at a moderate pace partly due to reconstruction demand” related to the massive earthquake and tsunami that struck northeastern All Japan news in March 2011, the report said.