15 October 2001, 11:43 Japan 2001 GDP forecast cut to minus 1.5 pct by ING Barings
TOKYO (AFX-ASIA) - ING Barings said it revised down its growth
forecast for Japan to negative 1.5 pct for 2001 and positive 0.6 pct
the following year, cutting both by 0.2 percentage points.
However, the brokerage added that while the Sept 11 attacks on the
US are obviously negative for the economy, they will encourage the
government to speed up its response to poor economic fundamentals.
"Major uncertainties relate to the world economy and to measures
related to the Japanese financial system," chief economist Richard
Jerram said in a report issued today.
"September's events have generated some sense of urgency among
policy makers. However, the challenge remains will these policy
responses offer the prospect of resolve some of Japan's deeper
problems," he said.
"The real turning point for Japan should not be expected before
second quarter 2002 and even then the pace of recovery is likely to be
slow."
Jerram said the policy responses could include financial
restructuring, as well as monetary and fiscal easing.
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