Japan's poor GDP figures reflect weaknesses in economy

Laura Dew
clock

Japan's economy grew less than expected at the end of last year, highlighting potential weaknesses in Prime Minister Abe's economic policies.

Initial forecasts had expected GDP growth of 2.8% for the three month period to December but the actual figure was only 1%. The reason for the poor results were weaker private consumption, capital spending and lower export figures. However, it was the fourth successive period of growth for the country.  The country is due to see its consumption tax rise from 5% to 8% in April which will increase consumer prices and could cause further falls in GDP. Some consumers, however, will be trying to purchase goods ahead of the tax rise to take advantage of the lower prices which could bo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read