Japan growth forecast lowered

TOKYO, July 23 (UPI) -- The Japanese government, citing worsening business conditions, lowered its fiscal 2008 real growth forecast to 1.3 percent from 2 percent.

The Cabinet Office blamed the conditions on soaring oil prices, U.S. economic slowdown and the yen's appreciation against major currencies, Kyodo reported.

The office also cut the nominal economic growth rate for the year to 0.3 percent from the 2.1 percent forecast in January, saying domestic prices are slow to increase even with soaring import prices of oil and grains.

Nominal growth rates fall below real rates when the economy is in a deflationary state, the report said.

The current fiscal year will end next March.