The gross domestic product (GDP) of Japan shrank in the second quarter to 1.6 percent annual pace with the decline in consumption and exports, the government reported Friday.
In time, the Japanese economy shrank 0.4 percent from the previous quarter, data released by the Cabinet Office.
After six months of growth, the GDP data is the first contraction the third world economy since the third quarter of 2014.
In the April-June quarter, consumption, a pillar that makes up almost 60 percent of Japan’s GDP decreased by 0.8 percent compared with January to March.
In turn, exports, another component of weight, suffered a sharp drop of 4.4 percent which is a clear reflection of the economic slowdown in China, senior partner Japan business.
Meanwhile, corporate capital investment, one of the pieces that the current government of Prime Minister Shinzo Abe has proposed to stimulate recovery enabled, fell by 0.1 percent .
The public investment, strengthened by the economic reform program of the Executive, called “Abenomics” remained at good level and showed a quarterly growth of 2.6 percent.
This first gap from the technical recession that Japan experienced between April and September 2014, mainly due to the effects of the VAT increase, however, was well digested by the Tokyo Stock Exchange, where a further contraction expected.
After half an hour of the start of the negotiations, the selective Nikkei advanced 145.66 points, or 0.71 percent, to stand at 20,665.11.
The figures also feed investors hope that the Bank of Japan (BoJ) decided to enhance their current program with additional stimulus measures to strengthen the functioning of the economy.
The BoJ in April 2013 triggered a massive program -the main asset purchase tool “Abenomics.” – with the idea of expanding the monetary base and leave behind nearly two decades of deflation
© 2015 EFE
© ZGS 2015
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