Monday, 16th August 2010
In Business In Japan,
Japanese economy slows
The Japanese economy has slowed on the back of weaker than anticipated data showing the country's second quarter performance.
Figures released today (August 16th) showed that the nation's growth during the second quarter of the financial year was much lower than many market analysts expected. Overall, gross domestic product (GDP) growth stood at 0.4 per cent - this is much less than the rate predicted by economists of 2.3 per cent.
It is also a sharp contrast to the growth seen in the previous quarter - 4.4 per cent - and compared to the improvements seen in other global economies, a "meagre" result, commented the Financial Times.
On the back of the news, the Japan Nikkei 225 stock average fell sharply.
The new figures also revealed a flattening off of consumer spending and analysts said that the data leaves the situation for quarter three uncertain.
Japan's national debt is currently around twice its GDP and as well as the impact of the economic downturn, the country continues to struggle with deflation levels.
Written by Mark Smith