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Japan cuts economic view for 4th month in row as recession looms

Published on Nov 16, 2012 8:14 AM
 
Workers unload a container from a cargo ship at a port in Tokyo on Nov 12, 2012. Japan's government cut its view of the economy for a fourth straight month in November, marking the longest such sequence since the 2008-09 financial crisis and underlining the view that the country is slipping back into recession as the global slowdown bites. -- PHOTO: REUTERS

TOKYO (REUTERS) - Japan's government cut its view of the economy for a fourth straight month in November, marking the longest such sequence since the 2008-09 financial crisis and underlining the view that the country is slipping back into recession as the global slowdown bites.

Weakening corporate capital spending was the chief culprit behind the downgrade, the government said as it warned of persistent weakness in the economy in the face of uncertainty over the euro zone debt crisis and a slowdown in China.

The downgrade comes as Prime Minister Yoshihiko Noda is due to dissolve parliament's lower house on Friday for a snap poll on Dec. 16, likely paving the way for a change of government and adding to the murky outlook for the world's third-biggest economy.

The government's bleak assessment may add pressure on the Bank of Japan for further policy easing measures, although sources told Reuters that the bank is set to hold fire next week and may sit still until next year to size up the policies of a new government.

 
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