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Japanese economy downgraded as "worsening" for first time in 7 years: government report
22/12/2008 16:05

The Japanese government today assessed its economy as "worsening" for the first time in seven years as capital spending, corporate profits and job opportunities continued to shrink rapidly amid the global economic meltdown.
In its monthly economic report, the cabinet office downgraded its assessment of the economy for the third month in a row, lowering its judgment from the evaluation that "the economy has weakened further" in November.
From the short-term perspective, the economy is likely to continue worsening for the time being, and the employment situation may be worsening further due to the rapid fall in production, said the report.
"Attention should be given to the risks that the economy could become severer due to the worsening global financial crisis," it said the report.
Between June 2001 and February 2002, the cabinet office evaluated the nation's economy as "worsening" or "continue to worsen" when Japan was hard hit by the burst of the IT bubble.
At a press conference following the release of the report, Economic and Fiscal Policy Minister Kaoru Yosano said there could hardly be an upswing in the near future as there are mounting uncertainties abroad.


Xinhua