Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

World Cup 2014: Germany-Brazil inspires the Web

Read more

THE INTERVIEW

Boutros-Ghali: 'I wanted to reform the UN'

Read more

IN THE PAPERS

57 000 little problems

Read more

IN THE PAPERS

The Sarkozy 'threat'

Read more

BUSINESS DAILY

Budget challenge for India's new government

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan? (part 2)

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan?

Read more

MEDIAWATCH

Israeli strikes on Gaza as seen on social media

Read more

INSIDE THE AMERICAS

World Cup humiliation for host nation

Read more

  • Video: Muslims in China confront obstacles to Ramadan fasting

    Read more

  • French companies will have to accept anonymous CVs

    Read more

  • Israel steps up airstrikes as diplomacy gets under way

    Read more

  • Argentina beat Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge congressional action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

  • Froome crashes out of Tour de France

    Read more

  • South Sudan independence heroes ‘have lost their way’

    Read more

  • 100 years on, the Tour de France returns to the Western Front

    Read more

  • Dozens of blindfolded bodies found south of Baghdad

    Read more

  • Both candidates say they won Indonesian presidential election

    Read more

  • Brazil players should never wear 'sacred uniform' again, press says

    Read more

  • Exiled Syrian opposition elects new president

    Read more

  • Ukraine imposes new conditions on peace talks with pro-Russia rebels

    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

Comments

COMMENT(S)