24 Jan '12, 6am

Japan economy forecasted to shrink in FY 2011

TOKYO (AFP) - Japan's economy is expected to shrink 0.4 per cent in fiscal year (FY) 2011, the country's central bank forecast Tuesday, a reversal of its previous projection of 0.3 per cent growth. The Bank of Japan (BoJ) said it expected growth of 2.0 per cent in FY 2012, a slight reduction from its previous prediction of 2.2 per cent growth. 'Japan's economic activity has been more or less flat, mainly due to the effects of a slowdown in overseas economies and the appreciation of the yen,' it said in a statement. It also cited the 'remaining effects' of record flooding in Thailand that disrupted the supply chains of many of the country's key manufacturers.

Full article: http://www.straitstimes.com/BreakingNews/Money/Story/STIS...

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