Japan’s Recession is Over

Here’s the silver lining from Japan’s latest economic data: The recession is over.  But that’s where the good news ends for Asia’s second-largest economy, which remains stuck in neutral despite the best efforts of Prime Minister Shinzo Abe to deliver a revival.

Gross domestic product grew by an annualized 2.2% in the three months ended December, Japan’s Cabinet Office said Monday. The result was much worse than the 3.6% expansion forecast by economists.  The economy grew by 0.6% compared to the previous quarter, but was held back by weaker than expected private consumption.

The lackluster expansion follows two consecutive quarters of negative growth for Japan — the definition of a recession — precipitated by a sales tax hike that took a huge bite out of consumer spending.  The results are likely to fuel critics of “Abenomics,” the economic plan championed by Abe. The strategy — a massive bond-buying campaign coupled with structural reforms and stimulus from the central government — has largely failed to lift wages, or dramatically boost growth.

CNN

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.