13 February 2001, 10:27  BoJ Feb economic assessment unchanged; focus on growing downside risk needed

BOJ Feb economic view nearly unchanged from January
BOJ sees risks for further slowdown on overseas econ
BOJ says exports falls are inevitable for the time being
BOJ says housing investment stays flat
BOJ repeats Japan's economy continues to recover gradually
BOJ: Output continues to rise, but the pace is slowing
TOKYO (AFX-ASIA) - The Bank of Japan said it left its economic
assessment unchanged in its February monthly report, adding that the
pace of the recovery is slowing due to decelerating export growth.
"The economy continues to recover gradually but the pace is slowing
due to decelerating export growth," the BoJ said, adding that attention
should be paid to the growing risk of downward pressure on the economy.

"Overall, it is likely that the economy will continue a gradual upward trend, led mainly by business fixed investment," it said. "However, attention should be paid to the growing risk of downward pressure on the economy induced by a possible further slowdown in overseas economies as well as developments in foreign and domestic capital markets."
The bank added that Japan cannot avoid a decline in exports in the short-term, due to slowing overseas economies.
"It seems to be inevitable that exports will decline for some time, reflecting the slowing of economies overseas," it said. The bank reiterated that its assessment of industrial production is that it is on a rising trend, although the pace is slowing considerably.
"Industrial production remains on a rising trend but the pace is slowing considerably," it said.

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