Thursday, October 2nd3.9°C
22738
22916

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

23057


Recent Trending




Today's Market
S&P TSX14690.38-115.061
S&P CDNX887.67-8.68
DJIA16793.92-10.79
Nasdaq4421.086-1.00
S&P 5001944.74-1.42
CDN Dollar0.8968+0.0012
Gold1212.40-3.10
Oil87.79-1.32
Lumber344.40+6.60
Natural Gas3.977-0.046

 
Okanagan Companies
Pacific Safety0.15+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.26+0.04
Cantex0.06-0.015
Anavex Life Sciences0.1805+0.0001
Metalex Ventures0.0550.00
Russel Metals34.75+0.07
Copper Mountain Mining2.20-0.09
Colorado Resources0.16-0.005
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.31-0.01

 





FEATURED Property
1805553524 - 3880 Truswell Road, Kelowna, BC
3 bedrooms 4 baths
$899,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


An income investment you may have overlooked

Investors seeking income often limit their selection to bonds and give little or no consideration to preferred shares. They usually ignore preferreds simply because they don't know much about them...


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...

_








Member of BC Press Council


22771