There will be no immediate recovery in productivity as the economic slump triggers rising unemployment and wage cuts, the Bank of Japan said Thursday while downgrading its assessment of the economy for the fourth consecutive month.
The central bank in part attributed the downgrade to growing uncertainty over the global economy, exacerbated by the Sept. 11 terrorist attacks in the United States.
The BOJ said in its report on recent economic and financial developments that declines in exports are expected to squeeze domestic demand, prolonging the slump.
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