Sunday, August 12, 2012

Japan's economic growth slows to 0.3% in second quarter

A bulldozer removes remains from destroyed houses

Gross domestic product grew by 0.3% during the period from the previous three months. That is down from 1% growth in the first quarter.

Compared to the same period last year, the economy expanded by 1.4%.

Analysts warned that Japan's growth may slow further in coming months amid an uncertain global economic climate.

"As domestic demand is losing momentum and exports will likely weaken further due to Europe's debt trouble, there is a possibility that Japan will go back into an economic lull in July-September (period)," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance in Tokyo.

"The Bank of Japan's economic view is bullish and the central bank is expected to downgrade its assessment on the economy and implement easing steps in September."



Source & Image : BBC

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