(CEP News) - The Japanese government said that the economic situation remains “severe”, thus keeping its assessment of the economy unchanged for the second month in a row.

“The economy is worsening rapidly while in a severe situation,” the Cabinet Office wrote in its monthly report for April.

The government, however, upgraded its evaluation of export levels and public works, while downgrading its assessment of business sentiment in the country.

The report echoes statements made earlier in the day by Bank of Japan Governor Masaaki Shirakawa to BOJ branch managers.

In a quarterly branch managers’ meeting, Shirakawa said that, despite expected improvements to exports and production levels, the economy would likely deteriorate further as investment and spending levels maintain their pace of decline.

The central banker has also said that corporate financial conditions would remain under “severe strain”.

By Todd Wailoo, twailoo@economicnews.ca

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Posted in Categories: Economy, Japan, Releases.

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