Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

French growth grinds to a halt over strikes

Read more

IN THE PAPERS

Norway will 'move mountains' for Nordic neighbor Finland

Read more

IN THE PAPERS

French media ban on naming jihadists: 'Good intention, bad result'

Read more

EYE ON AFRICA

Gigantic snails are a delicacy in Ivory Coast

Read more

MEDIAWATCH

Hollande and Valls tell Trump, 'France is still France!'

Read more

THE DEBATE

It's all about Trump: how effective will the Democratic Party campaign be?

Read more

FOCUS

Indian women on frontline of battle against alcohol

Read more

FRENCH CONNECTIONS

35 hours: Are French workers lazy?

Read more

INSIDE THE AMERICAS

Race to the White House: Hillary Clinton's popularity problem

Read more

Japanese economy shrinks in second quarter

Latest update : 2008-08-13

Japan's economy contracted by over half a percentage point in the second quarter, according to official figures, confirming fears that the world's second largest economy might slip into a recession.

Japan's economy contracted by 0.6 percent in the three months to June from the previous quarter, official figures showed Wednesday amid growing fears of a recession in Asia's biggest economy.

Gross domestic product (GDP) shrank by 2.4 percent on an annualised basis, the Cabinet Office reported. It was the first contraction of the world's second largest economy in one year.

Economic growth for the first quarter of 2008 was also revised down to 0.8 percent quarter-on-quarter from 1.0 percent previously.

The slowing global economy took a heavy toll on Japanese exports, which tumbled 2.3 percent in the second quarter.

Household spending fell 0.5 percent as soaring commodity and food prices, coupled with sluggish wages, prompted consumers to tighten their purse strings.

Business investment -- which had been a key driver of Japan's recovery from recession in the 1990s -- dropped 0.2 percent.

Asia's largest economy has enjoyed a gradual recovery in recent years from a slump stretching back more than a decade, but there are concerns that the export-led recovery has now stalled.

Japan's government said last week the country's longest period of economic expansion in postwar times appeared to have come to an end.

Given the fragile health of the economy, analysts do not expect the Bank of Japan to raise its super-low interest rates from the current level of 0.5 percent any time soon, despite the highest inflation in a decade.

Date created : 2008-08-13

COMMENT(S)