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Thursday, 20th August 2009
In Business In Japan,

Japan cautious over recovery

The Bank of Japan is remaining cautious over signs that the country may be emerging from the worst recession seen since World War II.

During a speech made to business executives in Okayama, Atsushi Mizuno, who sits on the Bank of Japan's monetary policy board, said that it is "highly uncertain" whether the current upturn in the economy will carry on, reported the Associated Press.

Despite promising signs showing that the Japanese economy has grown for the first time in five quarters, a number of large firms are still being forced to make job cuts and the employment market is weak, he said.

As well as this, Mr Mizuno asked for help from governments and central banks in sustaining the economic recovery.

Conditions are still fragile, he warned.

The Japanese economy is the second largest in the world and relies on the manufacturer of high-value items such as cars, computers and other electronic products, sales of which have been hit hard by the downturn.

Written by Kimberley Homer.