Bank of Japan policymaker Yoshihisa Morimoto on Thursday raised concerns over a slowing U.S economy and debt troubles in Europe and said that risks from global economy have become larger than before.

Morimoto said that there is a greater need to watch risks to the U.S. economy including weak labor market, the burden of balance sheet adjustment and the uncertainty about fiscal reform plans.

He said that sovereign debt problems in Greece and other European nations are highly worrying factors.

Japanese production is expected to return to levels seen before the quake by July-September as supply chain constraints ease, though the economy is still facing downward pressure, Morimoto noted.

RTTNews