Japanese eco slides more than expected
The Japanese economy contracted more than expected at 1.3 per cent in the last three months of 2010.
By PTI |
Tokyo/New Delhi: The Japanese economy contracted more than expected at 1.3 per cent in the last three months of 2010, as sluggish exports and lower consumer spending took a toll on the Asian major.
Going by official projections released last month, the economy shrank by 1.1 per cent in the December, 2010, quarter.
The downward revision comes less than a month after Japan lost its position as the world's second largest economy to neighbouring China.
Data released by the Japanese Cabinet Office today showed that the national GDP shrank 1.3 per cent in the last three months of 2010.
The steeper-than-expected fall was mainly on account of lesser domestic consumption and falling exports. The soaring yen impacted the fortunes of Japanese exporters.
In addition, the end of certain government subsidies for the car industry also hurt the economy in December quarter.
Nevertheless, the Japanese GDP clocked an overall growth of 3.9 per cent in 2010.
Unlike neighbouring China -- one of the growth engines for the global economy -- Japan has been beset by economic woes for most part of the past decade. Also, an ageing population is another major concern for the country's future growth prospects.
Japan, which is grappling with slow growth in recent times, has been the second largest economy in the world since 1967 till it was displaced by China last month.
Going by official projections released last month, the economy shrank by 1.1 per cent in the December, 2010, quarter.
The downward revision comes less than a month after Japan lost its position as the world's second largest economy to neighbouring China.
Data released by the Japanese Cabinet Office today showed that the national GDP shrank 1.3 per cent in the last three months of 2010.
The steeper-than-expected fall was mainly on account of lesser domestic consumption and falling exports. The soaring yen impacted the fortunes of Japanese exporters.
In addition, the end of certain government subsidies for the car industry also hurt the economy in December quarter.
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Nevertheless, the Japanese GDP clocked an overall growth of 3.9 per cent in 2010.
Unlike neighbouring China -- one of the growth engines for the global economy -- Japan has been beset by economic woes for most part of the past decade. Also, an ageing population is another major concern for the country's future growth prospects.
Japan, which is grappling with slow growth in recent times, has been the second largest economy in the world since 1967 till it was displaced by China last month.
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