Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
Business

Japan’s economy contracts 1.4 pct

TNE-DF_2016-02-16_15-1
By Administrador Whatsapp Twitter Facebook Share
2 years ago

Japan’s economy shrank more than expected in the final quarter of 2015.

BY ELAINE KURTENBACH

The Associated Press

TOKYO – Japan’s economy contracted at a worse than expected 1.4 percent annual pace last quarter as Prime Minister Shinzo Abe’s lavish stimulus policies failed to counter anemic consumer demand and sluggish exports.

The preliminary data shows the world’s third-largest economy stumbling again after a 1.3 percent expansion in the July-September quarter. The economy shrank 0.4 percent in the October-December quarter from the previous quarter. Despite the lackluster report, Tokyo’s main share index, the Nikkei 225, vaulted 7.1 percent to 16,017.94 helped by a weakening in the Japanese yen, hopes of more stimulus and Friday’s rally on Wall Street.

The latest contraction, the second in 2015, adds to worries that Abe’s strategy for reviving the economy through inflation fueled by massive monetary easing is failing. The slowdown in China, one of Japan’s biggest export markets, has been a further hindrance.

Japanese officials have expressed concern over recent market gyrations. The expectation in Tokyo is that a meeting of finance ministers of leading industrial nations next week in Shanghai might help restore some balance to markets that have been out of kilter since China began tweaking its foreign exchange policies in August.

Japan’s central bank has already resorted to imposing negative interest rates on some bank deposits it holds to help spur more lending, though cash-rich companies appear generally uninterested in borrowing.

Growth also has been stunted by slow increases in wages, which leave households less inclined to spend. Companies are still drawing down excess capacity built up during decades of fast growth, and have held back on domestic investments, viewing their aging home market as less attractive than other faster growing economies in Southeast Asia and elsewhere.

Comments Whatsapp Twitter Facebook Share
More From The News
Mexico

The Best Messages of Solidarity in Donat ...

9 mins ago
Mexico

Help Still Needed in Xochimilco

11 mins ago
Mexico

Cyclists Provide Aid to Mexico City Quak ...

28 mins ago
Mexico

International Help for Earthquake Rescue

29 mins ago
Most Popular

Mexico Shocked By News: Girl Trapped in ...

By The Associated Press
Mexico

Earthquake Death Toll Rises to 273

By Notimex
Mexico

7.1 Magnitude Quake Kills 139 as Buildui ...

By The Associated Press
Mexico

Search for Mexico Quake Survivors Enters ...

By The Associated Press
Mexico

Celebs Donate to Quake Relief, Politicia ...

By Federico Rojas Frias
Mexico