Saturday, December 20th2.0°C
24563
24285

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

24175


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


23616

FEATURED Property
2148248758 Kuipers Cresent
10091361 bedrooms
$269,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_





24111


Member of BC Press Council


23860