This would do little to bolsterexports, which have been hurt byweakexternaldemandrather thandecliningcompetitiveness, butwouldhinder the necessaryeconomicadjustment.
This reflects a protracted period of weakexternaldemand with consequent strongly negative effects on exports and increasing uncertainty about high-growth emerging countries.
"The biggest reason for the decline in gross domestic product (GDP) is externaldemand was weak and domestic demand did not recover as quickly as we thought, " said Shuji Tonouchi of Mitsubishi UFJ Morgan Stanley Securities in Tokyo.