The OECD club of rich nations on Tuesday lowered its projections for Japan's economic growth, citing waning government spending on reconstruction following the March 2011 disasters and the world economic downturn.

The OECD said in its semiannual report that Japan's 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 report by the Paris-based organization says the economy would grow 0.7 percent in 2013, halved from the earlier projected 1.5 percent increase. For 2014, it said Japan's real GDP would gain 0.8 percent.