Bank of Japan Policy Board member Tadao Noda said the economy is deteriorating more than the central bank forecast last month as the global recession triggers unprecedented drops in exports and output.
"Even though only one month has passed since we published our latest forecasts, the economy is performing worse than expected, judging from data released since then," Noda said Thursday in a speech in Naha, Okinawa Prefecture.
"Japan's economic conditions will become more severe."