Monday, 9th August 2010
In Business In Japan,
Goldman Sachs changes Japan outlook
Financial firm Goldman Sachs has changed its economic growth outlook for Japan following slow export growth in the country and data from the US which shows the recovery there is faltering.
The group lowered its full year forecast for the country's 2011 GDP from 1.7 per cent to 1.4 per cent and also lowered this year's estimate by 0.1 percentage point, to take it down to 3.3 per cent.
Senior economist at the company Chiwoong Lee said that Japan will see "a significant falloff" in consumer spending levels and also noted that in the US, the economic recovery has "lost a considerable amount of its momentum".
The state of the US economy and markets have a huge impact on global conditions and Wall Street data often impacts stocks and shares in Asian markets.
Mr Lee also pointed out that the end of government stimulus measures in Japan and other nations could add to the slowing of growth.
The recession seen in Japan as a result of the worldwide economic downturn was the worst in the country since the end of the second world war.
Written by Kimberley Homer.