Japan’s economy contracted by 7.1% in the three months to June, more than initial estimates, and revised from 6.8% reported in August. Most forecasts were for the economy to shrink by about 7%.
The contraction during the second quarter has been widely attributed to a hike in the nation’s sales tax, which rose from 5% to 8% in April. The official gross domestic product (GDP) figure of 7.1% is an annualised number.
In quarterly terms, the Japan’s economy, which is world’s third-largest economy, shrank by 1.8% in the three months to June compared to the quarter ending in March when it grew by 1.5%.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.