TOKYO (AFX-ASIA) - Aozora Bank senior economist Yasukazu Shimizu said he expects that if a large supplementary is adopted following the second quarter GDP data it will not push up overall growth. He said that the contribution from public works spending towards Japan's economic growth is currently slowing. "Previously, the economy was supported by public works spending as it was used efficiently, such as building important infrastructure ... but it is not happening anymore," Shimizu said. "Therefore, even if the government decides to introduce a large-scale supplementary budget, it will not support the overall economy -- it will just increase Japan's fiscal deficit," he said. Shimizu said his house will likely revise its GDP forecast for the year to March 2002 to a fall of 1.0-1.5 pct from the previous estimate of a 1.0 pct fall. He said his house will also cut its third quarter GDP forecast to fall of around 1.0 pct compared with the previous estimate of a 0.8 pct drop. "Overall, the second quarter GDP data confirms the further risk of downward pressure on the economy ... We expect capital expenditure will continue to slow in the third quarter due to slowing exports given the global economic slowdown," he said. Shimizu said growth of non-residential investment will fall further in the third quarter, possibly 3.0 pct quarter-on-quarter, adding that "non-residential investment will move into negative territory compared with a year earlier." Shimizu said he does not expect the Bank of Japan to ease its quantitive monetary policy at the next board meeting this month as overall the GDP figures did not show unexpected negative growth. "It is certain that political pressure (for action) on the BoJ will increase, such as the introduction of inflation targeting but I don't think the BoJ will ease its monetary policy at the next meeting as the GDP is not a surprising figure," he added.