Japan lowers its growth predictions

Tokyo: Japan has cut its economic growth forecast for this fiscal year to 0.5% from 1.5%, citing the impact of the March 11 quake, tsunami and nuclear disasters.

In fiscal 2012, which starts in April, the government expects growth to recover to between 2.7% and 2.9% in the world’s number three economy, due in part to a post-disaster reconstruction drive.

The Cabinet Office report warned of risks ahead — especially the strong yen, which hurts exporters, as investors have rushed to the safe-haven currency amid financial market turmoil sparked by US and European debt woes.