Demand for Sony products is being hit by the downturn

Electronics giant Sony has said it is going make its first annual loss in 14 years as the global economic slowdown hits demand for its products.

For the financial year ending in March, Sony said it expected to make a net loss of 150bn yen ($1.7bn, £1.2bn).

The company also blamed a strong yen for making its exports more expensive.

Sony had forecast as recently as October that it would make a profit this year. The expected loss was much bigger than analysts had anticipated.

Last year, Sony made a profit of 369.4bn yen, but its fortunes have changed as the global downturn has hit home.

In October, it cut its profit forecast in half and shortly after announced it would lay off 8,000 employees and shut some manufacturing plants.

Sony is particularly sensitive to currency fluctuations since about 80% of its sales come from overseas.

The yen is at a 13-and-a-half-year high against the dollar, which has eroded Sony's foreign earnings.