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TOKYO， Aug. 15 (Xinhua) -- Japan's economy essentially stalled in the April-June quarter， missing market forecasts and rekindling worries about the government's faltering bid to stoke a recovery， government data showed Monday.
According to the Cabinet Office， the second quarter growth of the world's third-largest economy came in less than market expectations for between a 0.4-percent and a 0.7-percent expansion in the recording period， logging an annualized 0.2-percent in real terms.
The minimal growth comes on the heels of a revised 2-percent growth logged in the January-March quarter and highlights the issues the government is having in actualizing economic policies to reverse two decades of deflation and reinvigorate corporate and private spending， against a backdrop of a persistently strong yen， which continues to hamper the nation's key export sector， as prior and recent stimulus efforts seem to be ineffectual.
The government on Monday pointed to a slowdown in overseas economies， the strength of the yen and slumping private consumption as all contributing to the stagnation.
But sluggish exports have been significantly weighing on the economy， the latest economic data showed， with the Cabinet Office saying exports had retreated 1.5 percent in the reporting quarter， following a 0.1- percent growth in the first three months of the year， underscoring withdrawing overseas demand and the negative impact of the yen's protracted appreciation.
With consumer spending， a hefty economic component accounting for 60 percent of total gross domestic product， also weighing on the economy， with an uptick of just 0.2 percent in the quarter， the failure of "Abenomics" is very much in the spotlight， with the weaker-than-expected growth data causing economists to question his policies' effects on deflation， market perception and participation and consumer spending.
In terms of consumer spending， analysts said solid corporate earnings have not translated into increased salaries or pay increases， with employees' salaries being raised an inappreciable 0.3 percent in the recording quarter from the previous one， meaning that consumers are reluctant to spend.
In addition， the government's latest data showed that household spending， another key gauge of current and future consumer confidence， had remained largely flat， adding pressure on the government following its recent upper house election pledges to convert its policies into bettering livelihoods and increasing living standards， with the same economic rhetoric largely unchanged since Prime Minister Shinzo Abe retook office three-and-a half-years ago on his "Abenomics" ticket.
Analysts also highlighted the fact that increased corporate profits have not been converted into expenditure， with business spending slipping 0.4 percent in the quarter， as corporations perce. Phillip Lindsay Jersey Authentic Odell Beckham Jr Jersey Myles Jack Womens Jersey Mitchell Trubisky Womens Jersey Minkah Fitzpatrick Womens Jersey Michael Thomas Youth Jersey Le'Veon Bell Youth Jersey Leighton Vander Esch Youth Jersey Lamar Jackson Kids Jersey Khalil Mack Kids Jersey |
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