Japan downgrades economic growth forecast

Japan's government has downgraded its economy growth prospects in the wake of the devastation caused by last month's earthquake and tsunami.

The government says key areas, such as industrial production and exports, will struggle as the nuclear crisis shows no signs of abating. This is the first time in six months the government has opted to downgrade growth. The Japanese government says in its monthly economic report the economy is in a "severe condition", according to the BBC. "The economy is showing weakness recently due to the influence of the Great East Japan earthquake," it says in the report. The move comes after the IMF yesterday downgraded Japan's economic growth outlook for 2011 to 1.4%, revised down from 1...