TOKYO First quarter growth in Japan is likely to be weak despite bullish market expectations and the government may reassess its view that the economic slump has stopped, a minister said Tuesday.

"I think the result of January-March gross domestic product (GDP) will remain tough. I'm not optimistic about the GDP data," Finance Minister Masajuro Shiokawa told a regular news conference.

"There may be something that requires us to reconsider our view of Japanese economic conditions, though we said the economy is bottoming out," he said.

A survey of 17 private research firms showed that on average they expect real GDP growth of 1.9 percent quarter-on-quarter or an annualized real growth of 7.9 percent, the ****Nihon Keizai Shimbun**** newspaper said at the weekend.

The cabinet office will officially release Japan's GDP data on June 7, AFP reported.

Annualized growth of 7.9 percent would mean the Japanese economy roared past the U.S. economy in the first quarter.

The world's largest economy shot up 5.6 percent in the three months to March -- the fastest pace in nearly two years.

Dollar-yen rates may swing following next week's release of GDP, said Shiokawa.

"I doubt the current dollar-yen level would be naturally stabilized. I think there will be some fluctuation in the foreign exchange market. We want to monitor the dollar-yen movements cautiously," he said.

"So far the yen's rise has been too sharp and from now dollar-yen will move to normal levels gradually," he said.

The Finance Ministry intervened in the foreign exchange markets twice last week after the yen surged to 123.50 to the dollar.

The government is concerned the recent rise of the yen, largely the result of dollar weakness against all leading currencies, would stifle the recovery of the recession-ridden Japanese economy.

A stronger yen makes Japan's exports less competitive and hence dampens production and economic growth.