"The slowdown in the global economy is becoming more widespread"
- The Cabinet Office
Japan cut China's economic outlook, lowering its evaluation of Japan's largest trading partner. This is due to a slow expansion in China.
Japan's pessimistic sentiment reflects the IMF's lowered 2013 world growth forecast amid deepening Euro bloc's debt crisis and slowing expansion in the emerging markets.
"The slowdown in the global economy is becoming more widespread," the Cabinet Office said in a monthly report.
"Sharp fluctuations" in financial markets due to global uncertainty could affect Japan's growth prospects, the Japanese government said, while reiterating that the economy is "on the way to recovery at a moderate pace".
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