Japan’s economy shrunk 0.4% in the second quarter of the year, official data showed on Monday, underscoring how the prime minsister’s “Abenomics” growth programme has yet to grain traction.
Weak domestic consumption and slow exports weighed on the world’s third largest economy, which shrank an annualised 1.6%, after posting growth in the previous two quarters, according to the cabinet office.
However, the data came in slightly better than the market’s expectations for a fall of 0.5% and the main Nikkei stock market index was up strongly by 0.6%.
Private consumption, which accounts for about 60% of Japan’s GDP, fell 0.8%, as exports dropped 4.4%.
“The sharp plunge from the previous quarter’s surprise growth was partly due to disappointing demand for Japanese products in the US, Chinese and other resource-exporting markets,” SMBC Nikko Securities said in a commentary.The Guardian
Japan's economy shrinks by 0.4% in a blow for 'Abenomics' growth plan
Agence France-Presse
1 comment:
"The sharp plunge from the previous quarter’s surprise growth was partly due to disappointing demand for Japanese products in the US, Chinese and other resource-exporting markets,”
Better start cutting prices even further in USD terms then... if they do, bearish JPY...
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