Tokyo: Evidence mounted on Friday of Japan's economic slowdown with the release of figures showing slumping industrial production and prices and a stubbornly high jobless rate.

The depressed economic data came just hours after the International Monetary Fund released a forecast of just 0.6 per cent growth for Japan's economy in 2001, following a 1.7 per cent rise in 2000.

“The deterioration of the economy is continuing on the back of weak demand, as clearly seen in a rapid decline in industrial output,” said Akihiko Suzuki, senior economist at Sanwa Research Institute and Consulting.

Japan's industrial output in March fell 2.1 per cent from the previous month of February, outstripping the government's forecast of a 0.8 per cent decline, the Ministry of Economy, Trade and Industry (METI) said.

The disappointing data prompted the government to revise down its output assessment for the fourth consecutive month, acknowledging the trend was falling rather than softening.

“The slump in output is rapidly intensifying at a speed that is much faster than we expected,” Suzuki said.

A METI official said the worst performer was semiconductors, which saw a second straight month of falling output.

A drop was also seen in auto production as the global economic slowdown slashed exports to the United States and Europe, the ministry official added.

In the three months to March, the nation's output fell 3.7 per cent from the previous quarter, the largest drop in three years, the ministry said.

Falling prices and depressed corporate earnings are expected to continue to put pressure on the jobs market. Data released on Friday showed the March unemployment rate was unchanged from February at 4.7 per cent.

A separate report by the health, labor and welfare ministry said the ratio of job offers to job seekers stood at 0.61 in March. This meant there were 61 job offers for every 100 people looking for work, compared to 64 in February.

AFP

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