Japan hit by weaker economic outgrowth
August 19, 2015, 4:30 pm    

Japan`s economy shrank in the second quarter of the year, marking a setback for the government`s reform policy.

Between April and June, economic growth contracted by 0.4% compared with the first three months of the year.

Lagging exports and sluggish consumer spending were the biggest contributors to the drop in growth.

It is likely to put pressure on Prime Minister Shinzo Abe to revamp his reform programme of monetary and fiscal stimulus to boost growth.

Japan`s economy shrank at an annualised pace of 1.6% in the quarter, following a revised expansion of 4.5% in the first quarter, official data showed.

Doubtful outlook

Japanese Economics Minister Akira Amari said the GDP contraction was due to weak exports to China and the US, as well as poor consumer spending as a result of bad weather.

The disappointing economic growth follows a recent run of weak data including exports and factory output, raising doubts about the outlook for the rest of the year.

In July, the International Monetary Fund had warned Tokyo, not to rely too much on the weak yen for long-term recovery.

Tokyo`s reform efforts, dubbed Abenomics, were kicked off in 2012, and were aimed at getting Japan`s economy out of deflation and back to growth.

While the programme is credited with having achieved short-term growth, the government has struggled to deregulate the job market and open up some of the country`s very protected industry sectors.


m1.png m2.png m3.png m4.png m5.png
f1.png f2.png f3.png f4.png f5.png
+ =
Latest Videos
VIDEO: The Biology of Bliss and the Human OS - Jamie Wheal
Terror and Tourism: Changing the Travel Landscape
Earth In 2050 - HD Documentary 2015
The drive for gender equality in corporate Japan
Plane touches down then aborts during storm (VIDEO)
The Fermi Paradox II — Solutions and Ideas – Where Are All The Aliens (VIDEO)
Money Survival Tips for Millennials (VIDEO)
Lightning strike explodes a tree (VIDEO)
Latest Photos
best cities for small businesses
Best Jobs in America (PHOTOS)
Inside the coolest private jets (PHOTOS)
The best hotel club floors in the world
Winning Images from the 2015 National Geographic Traveler Photo Contest
PHOTOS: Raging Wildfires Prompt Major Evacuation
Amazing Geometry Cities from air - Photos
Photos Bangkok Get snow - Opens Snow Village