The Bank of Japan trimmed has already trimmed its economic forecast for the year.Weak demand for exports and a dip in domestic spending may cut Japan`s economic growth in half in the next 12 months.

The Bank of Japan cut this year’s forecast to 1.1 percent compared to January’s 1.4 percent estimate, it lowered its 2013 estimate to 2.2 from 2.7 percent.But the central bank says the negative effects of this month’s sales tax increase should be over by summer with higher wages encouraging shoppers to keep on spending.

If overseas demand also picks up the bank says Japan`s economy will grow 1.5 percent in fiscal 2015 and 1.3 percent the following year.Concerns about slowing growth have led investors to sell Japanese stocks this year. The Nikkei 225 is down 12 percent after rising 57 percent in 2013. CCTV’s Mike Firn has more.

Bank of Japan Cuts Growth Forecast

The Bank of Japan trimmed has already trimmed its economic forecast for the year.Weak demand for exports and a dip in domestic spending may cut Japan`s economic growth in half in the next 12 months.CCTV's Mike Firn has more.