Japan's growth slows to 0.6%

12 Aug 13
Japan’s economy expanded at a slower pace in the second quarter of this year than in the first three months, figures from the government’s Cabinet Office have revealed today.

By | 12 August 2013

Japan’s economy expanded at a slower pace in the second quarter of this year than in the first three months, figures from the government’s Cabinet Office have revealed today.

Gross domestic product growth in the three months to the end of June was 0.6%, according to the figures, driven primarily by increased consumer spending.

However, the rate is lower than the 0.9% growth in the first three months of the year, and means that the predicted annual growth figure for 2013 has been cut from 4.1% to 2.6%.

According to the figures, government spending increased by 1% over the three month period, a faster expansion than in the first quarter of the year, when it grew by only 0.3%.

Overall, public sector spending is now set to increase by 4.2% over the year, as part of Prime Minister Shinzo Abe’s attempts to revive the economy after more than a decade of low growth and deflation.

As well as increasing spending, the Japanese central bank has also increased the money supply in a bid to combat deflation, as part of a host of policy reforms known as Abenomics.

Speaking after the growth figures were published, Abe said Japan’s economy was ‘steadily rising’.

He added: ‘I'll continue to take all possible care about the economy. I'd like to focus on the economy, including implementation of further growth strategies in the autumn.’

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