Japan downgrades economic outlook

The Japanese government has downgraded its assessment of the economy in the wake of the devastation caused by last month’s earthquake and tsunami.

It said key areas of the economy, including industrial production and exports, would suffer.

It marks the first time in six months that the government has downgraded its assessment.

On Monday, the International Monetary Fund (IMF) cut its forecast for Japanese growth.

“The economy is showing weakness recently due to the influence of the Great East Japan earthquake,” the government said in its monthly economic report.