The FINANCIAL — Japan’s economy shrank at an annual pace of 1.2% in the April-June quarter from the prior three-month period, confirming the first contraction in three quarters, though the size of the decline was smaller than first thought, according to Nasdaq.
Revised estimates of second-quarter gross domestic product, released on September 8 by the Cabinet Office, showed that softer exports weakened domestic economic activity, as the country feels the effects of an economic slowdown in China, which hampers Prime Minister Shinzo Abe’s economic revival plan.
The latest figure compared with a preliminary reading in August of a 1.6% decline in GDP.
Business investment, a key measure of Abenomics’ progress, fell an annualized 3.6% compared with an initial figure of 0.3%, the first drop in three quarters, showing that companies remain wary about expanding their operations in Japan.
Abenomics aims to instill business confidence through a combination of policy initiatives, including monetary easing, tax cuts and deregulation. It is hoped that a stronger corporate sector will lead to higher wages and consumption, eventually giving rise to self-sustaining economic growth.
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