BoJ chief sees Japan economy shrinking in H1

TOKYO, April 23 (AFP): Bank of Japan governor Masaaki Shirakawa said the economy will likely contract in the first half mainly due to stalled production after the quake-tsunami, the Wall Street Journal reported Saturday. "We are now expecting production and GDP will decline in the first quarter and the second quarter," Shirakawa said in an interview with the paper Friday. He said stalled production was the "heart of the problem" facing the Japanese economy in the aftermath of the monster March 11 quake and tsunami disaster which has left 26,455 dead or missing. The disasters damaged production facilities and atomic power plants in the northeast, triggering the world's worst nuclear crisis since Chernobyl and resulting in electricity shortages and disruptions to the supply chain. Shirakawa told the paper the disruptions to production could last until at least August due to the power shortages caused by the nuclear crisis. The BoJ governor's comments are in tune with analysts who have said they expect the disaster will force the world's third-largest economy to contract in the first half. Many see Japan sliding into a temporary recession after the quake and tsunami devastated infrastructure and manufacturing facilities and plunged the nation into its worst crisis since World War II. The central bank will hold a policy meeting on Thursday and release its semi-annual report on the economic outlook.