Japan’s Economy stalls in Second quarter
Japan’s economic growth ground to a halt in April-June after an exceptional increase in the previous quarter on weak exports and capital expenditure, Cabinet Office data showed on Monday.
Analysts say this may put more pressure on Premier Shinzo Abe to come up with policies that produce more sustainable growth.
Japan, the world’s third-largest economy expanded by an annualized 0.2 percent in the second quarter, less than a median market forecast for a 0.7 percent increase and a marked slowdown from a revised 2 percent increase in January to March.
Japan’s Nikkei share index slipped on Monday as the data soured investor sentiment.
The Nikkei dropped 0.2 percent to 16,884.76 points by midmorning, after rising 4.1 percent last week.
The country’s Economy minister blamed corporate sentiment and the Kumamoto earthquake for dampening growth.