Japan revises down economic growth forecast for 2009

The Government of Japan revised down from 3.7% to 2.3%, forecasts on growth of gross domestic product (GDP) for 2009, said sources from the Executive.

Between April and June the Japanese GDP grew by 0.6% over the previous quarter which means the growth rate of 2.3% yoy, or 1.4% less than originally planned.

The sources attributed the decline to the fall in investment in fixed assets and to increased unemployment in the country.

At the same time, the sources stressed that despite the downward revision of forecasts, GDP recorded an increase for the first time in 15 months, thanks to measures taken by the Government.