Posted on 08/12/2012 6:40:43 PM PDT by BenLurkin
The Japanese economy grew at a weaker-than-expected annualized pace of 1.4% in the April-June quarter, as exports slowed and a domestic-demand led recovery showed signs of faltering.
The preliminary gross domestic product data, released by the Cabinet Office on Monday, marked a sharp slowdown from the previous quarter's revised 5.5% expansion.
It was the fourth-straight quarter of growth in the world's third-largest economy. Economists polled by Dow Jones Newswires had expected a 2.7% annualized rise.
Japan's economy minister, Motohisa Furukawa, said at a news conference that while he expects the recovery to continue in the coming quarters, the government "needs to be alert to further deterioration in overseas economies."
The data come as Japan's economy faces strong headwinds caused by Europe's debt crisis, which has slowed global growth and made Japan-made goods less competitive in overseas markets by driving the yen higher.
International trade shaved 0.3 of a percentage point from overall growth, the data showed.
Exports of goods and services rose at an annualized rate of 4.8%, up for the second quarter in a row but much slower than a revised 14% gain in January-March.
The country also faces a rising import bill due to higher fossil-fuel imports as its nuclear plants remain offline. Imports gained an annualized 6.4%, the 12th consecutive quarterly growth. In the first quarter, imports were up a revised 9.1%.
Stepped-up government spending has picked up the slack in recent quarters.
Public investment, including infrastructure projects, was up an annualized 7.2% in the second quarter, contributing 0.3 of a percentage point to Japan's overall growth. Spending to rebuild areas devastated by the March 2011 earthquake and tsunami helped to boost the figure.
The staying power of the recovery is coming into question as signs emerge that Japanese consumers and businesses are growing less optimistic.
(Excerpt) Read more at online.wsj.com ...
I think I've found the problem ...
Now Americans are buying Chinese and how long will it be before the Chinese economy flounder when they no longer have the American consumer base to support them?
Now Americans are buying Chinese and how long will it be before the Chinese economy flounders when they no longer have the American consumer base to support them?
If the Japanese are smart, they should ditch their current progressive income tax code (which was instituted in the late 1940’s during the Allied Occupation) and start all over again with a no-loophole low-rate flat tax. Watch Japan’s economy zoom through the roof when that happens.
Ruh-roh!
Now it looks like they listened to Paul Krugman and got screwed
I do have to ask, “How can you tell it is slower?”
Isn’t party of Japan’s problem it’s declining demographics?
It isn't just "part" of the problem, but a major portion of the problem, and the reason it will doubtless get worse going on...
the infowarrior
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