http://www.bbc.com/news/business-29105542
Japan's economy shrank 1.8% in the April-to-June period, worse than forecast and raising more questions about the government's economic policy. The official data confirmed that the world's third largest economy suffered its sharpest quarterly contraction since the 2011 earthquake disaster. On an annualised basis it would mean gross domestic product (GDP) fell 7.1%.
Japan's economy shrank 1.8% in the April-to-June period, worse than forecast and raising more questions about the government's economic policy. The official data confirmed that the world's third largest economy suffered its sharpest quarterly contraction since the 2011 earthquake disaster. On an annualised basis it would mean gross domestic product (GDP) fell 7.1%.
The fall was blamed in part on a consumer sales tax introduced in April, with another rise planned for 2015. The release of Monday's revised official data follows publication of initial GDP estimates that put the second quarter contraction at 1.7%, with the annualised rate at 6.8%. In the first quarter of 2014, the economy grew by 1.5%.The single biggest factor behind the contraction in the second quarter is thought to be a rise in the nation's sales tax in April, to 8% from 5%. There are now calls for Prime Minister Shinzo Abe to delay a further rise planned for next year, while the central bank has faced fresh demands to expand its stimulus programme.
INC News, 08/09/2014
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