In the April to June Quarter of the Year Japan’s Economy Contracted 1.2 Percent
All is not well as far as the economy of Japan is concerned. The country's economy contracted at an annual rate of 1.2 percent in the April to June quarter in the current year as per the revised data revealed on Tuesday. The economists warn that a slowdown in China's economic activities and the turmoil in the financial market may also further weaken the recovery which was expected in the latter half of the year.
However, the figure was rosier than the preliminary approximation done in the previous month which was at 1.6 percent contraction. According to the economists the general trend indicates weakness.
In a commentary Marcel Thieliant of Capital Economics said "The details were hardly reassuring." There was a drop of 0.9 percent in corporate investments. It is expected that the growth will be positive but moderate in the ongoing quarter.
There has been a slow growth in the industrial production as well as the auto registrations sectors. The current exports and the forecast for the coming months have also become dull due to the slow growth in China.
Though the government is making an effort to perk up the economy through inflation but the effort too is not working well with the slow growing wages and weak exports.
United Kingdom News
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