growth will slow in 2011 as the yen's rise 11 percent this year against the dollar ,Japanese government

Japanese government said that growth will slow in 2011 as the yen's rise 11 percent this year against the dollar threatens recovery.

Gross domestic product probably increased 1.5 percent in the year beginning 1 April after rising 3.1 percent expected this year, the Cabinet Office said in Tokyo.

Shares of Toyota Motor Corp. and Panasonic Corp. fell after the government also downgraded its assessment of the nation's exports, which have been threatened by the advance of the coin to a maximum of 15 years. overseas shipments expanded by 9.1 percent in November, the lack of estimates of economists, a Finance Ministry report showed today.

"With the yen staying at these high levels, exports are likely to have difficulties to grow despite demand in advanced nations, especially the U.S., will recover," said Takuji Okubo, chief Japan economist Societe Generale SA in Tokyo.

The yen traded at 83.71 per dollar at 3:34 pm in Tokyo. The Nikkei 225 Stock Average fell 0.23 percent, released earlier paring gains after a report showed exports accelerated for the first time in nine months in November.

"We have to keep a close eye on any possible slowdown in overseas economies and changes in the exchange rate," the government said. "We will continue to take bold action as an intervention currency when necessary, because an excessive yen strengthening and extension risk damaging the economic and financial stability."

Steam loss

Government data last month showed that industrial production fell the most since February 2009, the unemployment rate increased, and machinery orders fell more than economists forecast, indicating that the economy is losing steam.

"The economic recovery is clearly losing momentum while deflationary pressures remain strong," said Julian Jessop, economist at London-based Capital Economics, in a note highlighting the risk that the economy may contract this quarter and next. "The room for fiscal stimulus is also largely depleted."

Japan's economy will shrink at a rate of 1.9 percent annually in the three months to December, according to a survey of 42 economists released December 8 by the Economic Planning Association. The growth was 4.5 percent in the third quarter as incentives to buy automobiles and electronics spurred consumer spending.

Sony Corp., the largest television manufacturer in the world's third largest, may miss the goal of selling 25 million TVs this fiscal year, Vice President Hiroshi Yoshioka said Dec. 20.

Falling short

The company could fall below its target for the year ended March 31 by a "little," he said without elaborating. Sony said in October, the TV industry moves towards the "stiff competition", making it difficult to take advantage of the TV functions of this fiscal year.

The Japanese parliament last month approved an additional budget to fund a stimulus package to combat deflation and the fight against the stronger yen. To encourage growth, the Bank of Japan cut its benchmark interest rate and created a fund to buy assets in October.

Cabinet of Prime Minister Naoto Kan, last week approved a scheme of tax revision, including a cut in corporate tax rate, to bolster a slowing economy. His government is also preparing a budget for next fiscal year.

declining popularity of Khan and a hung parliament may complicate his efforts to implement new economic policies. The rating Kan Cabinet approval dropped to 21 percent, the lowest since he took office in June, according to a survey by the Asahi newspaper. The survey was conducted on December 11 and 12 and compared with a rating of 27 percent in November.