Friday, 9th December 2011
In Business In Japan,
GDP growth reduced by 0.4%
Japan, the world’s third largest economy, had its gross domestic product (GDP) growth estimate squeezed by 0.4 per cent as continued economic uncertainty plagued the country.
Originally forecasts put growth at six per cent, however, later revisions reduced this to 5.6 per cent in light of the European sovereign debt crisis, a strengthened yen and global financial instability.
For the period July to September, the nation’s GDP increased 1.4 per cent, figures from the Cabinet Office showed today (December 9th).
A slowdown in growth is expected by analysts, who believe Japan will continue to face a tough economic climate.
Head of Japan strategy at Jefferies Japan Naomi Fink told Reuters: “[The survey] was pretty dire so in light of that, the big downward revision was expected and wasn’t as big as forecast.
“It was still a substantial quarterly rebound and many are foreseeing growth to come, especially from domestic demand, and that’s probably possible for 2012.”
A recent survey by the Mainichi Daily showed 54 per cent of people in Japan were opposed to prime minister Yoshihiko Noda’s intents to increase the consumption tax.
Posted by Mark Smith