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.