OECD cuts Japan growth projection

TOKYO, Nov. 27 (Xinhua) -- The Organization for Economic Cooperation and Development on Tuesday downwardly revised its forecast for Japan's economic growth, attributing the adjustment to the country's waning government spending on reconstruction following the March 2011 earthquake and the world economic downturn.

The Paris-based OECD said in its biannual report that the Japanese economy would expand 1.6 percent this year, downgraded from its May forecast of 2.0 percent in terms of inflation- adjusted gross domestic product growth.

The organization said the Japanese economy would grow 0.7 percent in 2013, down from the earlier projected 1.5 percent gain. For 2014, it said Japan's real GDP would increase 0.8 percent.

The economic recovery from last year's catastrophic quake and tsunami has "stalled, reflecting the slowdown in world trade and weaker domestic demand," according to the OECD, it also said that reconstruction spending are shrinking and the planned tax hikes are further hurting private consumption.

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