Japan’s Economy Contracts More Than Expected

Japan’s second quarter results were worse than expected contracting by 2.1 percent for the three months ending in June, compared to an expected 1.3 percent decline. The earthquake and tsunami caused widespread destruction to the nation’s infrastructure while weaker demand for Japan’s exports also reduced sales.

“As capital spending is unlikely to grow as strongly as previously thought, a rebound in gross domestic product in July-September may be smaller than initially thought, although gradual recovery is still expected,” said Yuichi Kodama of Meiji Yasuda Life Insurance in Tokyo. “The pace of Japan’s economic recovery has apparently slowed since around August due to heightened uncertainty about the global economy.”

Source: BBC News

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