Japan warns outlook is worsening

by Jane Padgham, Evening Standard THE Japanese government today slashed its forecasts for its crisis-hit economy for the sixth time this year, saying the outlook had deteriorated across the board.

'Exports and industrial production have fallen substantially and business investment is dropping as well. The economy is deteriorating further,' the grim prognosis said. A spokesman said the word 'further' had been carefully chosen to reflect the fact that not only was the deterioration continuing but its magnitude had increased as well.

The report painted a bleaker picture of all aspects of the economy, from production, exports and employment to housing investment and capital spending.

Figures out next month are expected to confirm that Japan's economy is in its fourth recession in less than a decade.

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-- Martin Thompson (mthom1927@aol.com), August 10, 2001