Japan business leader offers grim outlook

Japan's top business leader today expressed a grim assessment of the nation's fragile economy in sharp contrast with the government…

Japan's top business leader today expressed a grim assessment of the nation's fragile economy in sharp contrast with the government's brighter forecasts.

"We are on the plateau," Mr Takashi Imai, chairman of the Japan Federation of Economic Organisations, told a news conference.

"We cannot be optimistic," said Mr Imai, who is also chairman of Japan's Nippon Steel Corp. "We need drastic measures to dispose of bad debts and push structural reforms."

His remarks came as Japan's deputy economics minister Mr Katsusada Hirose said Japan's economy was still on the recovery track.

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Mr Hirose raised concerns about waning exports, a slowdown in industrial production and sluggish personal spending, according to Kyodo News agency.

But also said there were also positive factors such as brisk demand for vehicles and information technology goods, as well as steady corporate capital investment.

AFP