Japan's economy just shrunk for the first time in over 2 years

Darnell Taylor
May 16, 2018

However, there are concerns that trade friction with the United States could affect demand for exports.

On a seasonally adjusted annualized basis, GDP was down 0.6% - again missing forecasts for a decline of 0.1% following the downwardly revised 0.6% gain in the previous three months.

"But we need to be mindful of the impact of overseas economic uncertainty and market volatility", he added. To get back on track, Japan needs to increase its exports.

Australia will provide Q1 data for wage prices, which are expected to hold steady at 0.6% on quarter and 2.1% on year.

Japanese government officials expect the decline to be temporary. It ended the longest straight period of uninterrupted growth since the late 1980s.

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Capital investment was down 0.1 percent.

The Japanese economic system has been comparatively wholesome in latest quarters, selecting up from the doldrums that spanned earlier a long time, on extraordinarily free lending and a authorities program created to combat deflation - the continuous spiraling down of costs.

As of 9:15 a.m. local time, the 225-issue Nikkei Stock Average dropped 47.21 points, or 0.21 percent, from Tuesday to 22,770.81.

Consumer spending fell marginally, registering a decline of less than one percentage point in the first quarter.

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