The government has downgraded its assessment of the economy for the first time in 10 months as analysts forecast that gross domestic product will shrink this quarter.
Risks include a "further slowing down of overseas economies and sharp fluctuations in the financial and capital markets," the Cabinet Office said in its monthly report released Tuesday, cutting the evaluation of the global economy.
The government cut its view on personal consumption, home-building, exports, imports and industrial production, while raising its assessment of the labor market.