Saturday, April 18th17.5°C
25758

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

25694


Recent Trending




Today's Market
S&P TSX15360.55-26.22
S&P CDNX702.85-2.74
DJIA17826.30-279.47
Nasdaq4931.81-75.98
S&P 5002081.18-23.81
CDN Dollar0.8169-0.0001
Gold1204.10+6.10
Oil56.14-0.57
Lumber245.50-9.80
Natural Gas2.641-0.043

 
Okanagan Companies
Pacific Safety0.12+0.00
Knighthawk0.010.00
QHR Technologies Inc1.40-0.01
Cantex0.035+0.005
Anavex Life Sciences0.33+0.02
Metalex Ventures0.075+0.030
Russel Metals27.48-0.23
Copper Mountain Mining1.13+0.01
Colorado Resources0.10-0.00
ReliaBrand Inc0.005+0.001
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation1.80+0.15

 





FEATURED Property
22440393700 Sunset Ranch Dr.
2 bedrooms 3 baths
$524,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Calling on your help!

Has the internet flattened prices as predicted? Has the internet created opportunities for your business to find higher priced markets further afield? Is posting prices on your website a good thing o...


Living with Plan B

“It does not do to leave a live dragon out of your calculations, if you live near him.”― J.R.R. Tolkien, The Hobbit Photo: Thinkstock.comHuman beings are optimists by nature. Whether...


Reverse mortgage solution

With the housing and financial markets on solid footing, some retired Canadians may consider cashing in their growing assets to enjoy vacations and major home renovations. Others, on the other hand, a...

_



25221




Member of BC Press Council


25772