Open

Coming up

Don't miss

Replay


LATEST SHOWS

FOCUS

Spain's El Hierro to become world's first self-powered island

Read more

IN THE PAPERS

A bellwether for what not to do

Read more

ENCORE!

Luc Besson back in action with Scarlett Johansson in 'Lucy'

Read more

FOCUS

Israel's minorities and military service

Read more

MIDDLE EAST MATTERS

Iraq: Kurdish forces fight to protect Yazidis

Read more

DEBATE

Libya unrest: National Assembly asks for UN help to dissolve militias

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government? (part 2)

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government?

Read more

MEDIAWATCH

#IceBucketChallenge and hashtag activism

Read more

  • France’s Hollande says global security ‘worst since 2001’

    Read more

  • France urges Iran, others in region, to join fight against IS

    Read more

  • Brutal IS beheading video sparks social media pushback

    Read more

  • Ex-PM Juppé announces bid for 2017 French presidential race

    Read more

  • A new view on Normandy landings, 70 years on

    Read more

  • Video: Dozens arrested despite smaller protests in Ferguson

    Read more

  • Dozens killed as landslides strike Japan’s Hiroshima

    Read more

  • Deadly airstrikes hit Gaza as ceasefire with Israel collapses

    Read more

  • Suspected Ebola cases in Austria, new drug raises hopes

    Read more

  • WWII anniversary highlights best - and worst - of Paris police

    Read more

  • Headscarf at the beach sparks French MEP’s fury

    Read more

  • Video: Life in under-siege Donetsk

    Read more

  • Racism, riots and police violence: USA under scrutiny

    Read more

  • ‘Let it be’: Londoners sick of Abbey Road tourists

    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)