Tuesday, May 5th12.1°C
26256
24291

Japan's economy still shrinking

Japan's economy remained mired in recession late last year, shrinking 0.4 per cent in annualized terms for the third straight quarter of contraction on feeble demand both at home and overseas.

The government reported Thursday that growth for all of 2012 was 1.9 per cent, after a 0.6 per cent contraction in 2011 and a 4.7 per cent increase in 2010 and a 5.5 per cent contraction in 2009.

The figures were worse than expected, as many analysts had forecast the economy may have emerged from recession late last year as the Japanese yen weakened against other major currencies, giving a boost to Japanese export manufacturers.

Prime Minister Shinzo Abe, who took office in late December, is championing aggressive spending and monetary stimulus to help get growth back on track. He has lobbied the central bank to set an inflation target of 2 per cent, aimed at breaking out of Japan's long bout of deflation, or falling prices, that he says are inhibiting corporate investment and growth.

However, the Bank of Japan was not expected to announce any major new initiatives from a policy meeting Thursday. The current central bank governor, Masaaki Shirakawa, is due to leave office on March 19, and Abe is expected to appoint as his successor an expert who favours his more activist approach to monetary policy.

Last year began on an upbeat note with annual growth in the first quarter at 6 per cent as strong government spending on reconstruction from the March 2011 tsunami disaster helped spur demand. But the economy slipped back into contraction in the second quarter and deteriorated further as frictions with China over a territorial dispute hammered exports to one of Japan's largest overseas markets.

The Canadian Press


Read more Business News

25935


Recent Trending




Today's Market
S&P TSX15173.94-193.53
S&P CDNX696.75-2.37
DJIA17928.20-142.20
Nasdaq4939.33-77.60
S&P 5002089.46-25.03
CDN Dollar0.8276-0.001
Gold1192.90+6.10
Oil60.86+0.46
Lumber244.50+2.50
Natural Gas2.793+0.013

 
Okanagan Companies
Pacific Safety0.145+0.010
Knighthawk0.010.00
QHR Technologies Inc1.45-0.03
Cantex0.04+0.00
Anavex Life Sciences0.3415+0.0160
Metalex Ventures0.10+0.01
Russel Metals26.84-0.60
Copper Mountain Mining1.58-0.12
Colorado Resources0.10-0.00
ReliaBrand Inc0.0059+0.0019
Sunrise Resources Ltd0.04+0.00
Mission Ready Services0.195+0.010
Decisive Dividend Corporation1.85-0.15

 





FEATURED Property
2259190Summerland Forest District
2 bedrooms 1 baths
$165,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Not the lawsuit type

If I asked you whether you were the lawsuit type, chances are that your answer would be a resounding “NO”. Most people cringe at the thought of being involved in a lawsuit and if you don&r...


The rules are changing

In recent years, a number of countries, including England, Australia and the United States, have changed the regulatory framework that governs their financial institutions. Included have been changes ...


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...

_



26000




Member of BC Press Council


25690