"The Japanese economy is showing weakness recently due to the deceleration of the world economy"
- Japanese Cabinet Office
Japanese government downgraded its economic outlook for the fourth consecutive month, as slump in exports and weak domestic demand threaten to tip the country into a recession by the end of this year. This is the longest streak of downgrades since global financial crisis, however, the government has raised its outlook for the global economy for the first time since February 2011. In the meanwhile, Japan's economy is expected to shrink by 0.4% in the last quarter of 2012.
"The Japanese economy is showing weakness recently due to the deceleration of the world economy," the Cabinet Office said in a report released in Tokyo today. "Attention should be paid to employment and income situations in the future, and the adverse effects of deflation on the economy."
"The global economy is showing some bright signs but we can't be optimistic. Corporate profits are sluggish as falling exports weigh on output, the corporate mood and capital spending."
The Nikkei 225 Stock Average skyrocketed 2.20 per cent, or 194.44 points, to 9,024.16. The broader Topix Index soared 1.88 per cent, or 13.83 points, to 751.34.
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