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TOKYO: Japan is warning of a tougher economic outlook for next year.
And according to a top government official, growth may fall into negative territory for the first time ever in fiscal year 2009.
Every year in December, the Japanese government will compile its forecast for the upcoming fiscal year, and it has never before predicted a contraction.
The worst-ever forecast was for zero growth in fiscal year 2002.
But on Tuesday, Economic and Fiscal Policy Minister Kaoru Yosano said he is not at all confident of growth in the upcoming fiscal year, starting in March.
He said that is because conditions at home and abroad suggest it is difficult to find factors that will help turn the current situation around.
This is raising speculation that the government may forecast zero growth or even negative growth for the first time ever, as compared to an earlier forecast of 1.6 per cent expansion.
Data earlier has shown that the world's second largest economy is in recession, after contracting for the second straight quarter.
And the outlook is that the next few quarters will be critical, with some saying the Japanese economy will continue to shrink.
- CNA/yt
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