TOKYO, May 17: The Japanese economy has bottomed out due to a recovery in exports, the government said on Friday, upgrading a key economic report for the third consecutive month.

The economy has bottomed out, the Cabinet Office said in its monthly report for May.

But the situation remains severe, with a revival in the global economy seen as the main catalyst for a turnaround rather than a strong pick-up in domestic demand, the Cabinet Office said.—AFP