Japanese growth slowing, government says

TOKYO, Feb. 22 (UPI) -- For the first time in 15 months, the Japanese government downgraded its economic assessment Friday, saying growth continued in January but at a slower pace.

Weakened exports and flat consumer spending are high on the list of concerns, Kyodo News reported.

"Downside risks are growing," fiscal policy minister Hiroko Ota said. The report described the country's economy as recovering, but "at a moderate pace recently."

Ota said that a fiscal stimulation package was not needed at this time, but admitted the subprime mortgage crisis in the United States was being felt in Japan.

The report also downgraded the Tokyo government's assessment of the U.S. economy, which faces, "further downside risks," the report said.