Japan economy feels effects of disaster

TOKYO, April 13 (Agencies): The Japanese government has downgraded its assessment of the economy in the wake of the devastation caused by last month's earthquake and tsunami. It said key areas of the economy would suffer, including industrial production and exports. The decision marks the first time in six months that the government has downgraded its assessment. On Monday, the International Monetary Fund (IMF) cut its forecast for Japanese growth. Another strong aftershock from the 9.0-magnitude quake that struck the northeast coast more than a month ago hit the disaster region, further fraying nerves amid tense stop-and-go containment efforts at a stricken atomic plant. Emergency workers at the tsunami-hit Fukushima nuclear site northeast of Tokyo started syphoning off tonnes of highly radioactive water and eyed long-term plans to encase dangerous spent fuel rods in steel caskets. The government meanwhile, worried over food safety after the plant leaked radiation into the air, soil and sea, ordered a halt to some mushroom shipments from the region, having earlier restricted vegetables and dairy products.