World Bank Cuts Japan Estimate Due to Disputed Isle Row

The World Bank announced it has slashed its economic growth forecast for Japan to 0.8 percent this year from an earlier estimate of 1.5 percent, due partly to the negative impact of Tokyo’s territorial dispute with Beijing.

“In Japan, the current dispute with China over the Senkaku Islands is sapping growth, while the countrys huge fiscal debt requires attention,” the World Bank said Tuesday in its latest Global Economic Prospects report.

“Assuming that relations with China improve during the course of 2013, output is expected to gradually strengthen, but to expand by only 0.8 percent in 2013, before strengthening toward 1.5 percent by the end of the forecast period,” the semiannual report said.

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