Latest News:  
Beijing   Sunny    16 / 4 ℃  City Forecast

English>>China Business

Japanese economy contracts

(Shanghai Daily)

09:08, November 13, 2012



JAPAN'S economy contracted in the latest quarter, signaling that like Europe it may already be in recession, further weighing down world growth.

On an annual basis, the world's No. 3 economy shrank 3.5 percent in the July-September quarter, the government said yesterday. It was in line with gloomy forecasts after an islands dispute with China hit exports that were already weakened by feeble global demand.

The bad news will temper optimism over recoveries in China and the US, where some economists are predicting growth will top 3 percent in the third quarter. China's painful slowdown likely bottomed out in the third quarter, with recent indicators such as factory output and auto and retail sales showing improvement. And Europe, though it may have turned a corner on its debt crisis as the financial system stabilizes, may get worse before it gets better.

Japan's outlook remains bleak, with most economists forecasting a further decline in economic activity for the October-December quarter, which would officially put it in a recession according to the common definition of two straight quarters of contraction.

Consumer spending fell 0.5 percent in the third quarter, as subsidies for auto purchases expired, and corporate capital spending shed 3.2 percent. Spending on reconstruction from the country's March 2011 tsunami and nuclear disasters has also weakened.

The drop for the current quarter may not be as severe as that seen from July to September.

"If the economy does recover in any way, it will be a minute rebound," said David Rea, an economist in London with Capital Economics.

Recommended Features:
A Decade of Fastest Development Eastern Boom Lightens Western Gloom Oct. data released, inflation slows
Gold collection issued to mark 'Year of Snake' China: A Fast-growing Force in IPR 13th Int'l Automobile Industry Exhibition
China Int'l Industry Fair opens in Shanghai Caofeidian coal wharf put into use Canton Fair wraps up on Sunday

Email|Print|Comments(Editor:梁军、马茜)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Devil training of PLA

  2. Weekly review of military photos

  3. Unforgettable moments in Nov. (II)

  4. Diverse activities on Single's Day

  5. Beijing experiences windy weather

  6. RMB hits six-month high

  7. Chinese acrobatics gain global clout

  8. Carl Warner's Foodscapes

Most Popular

Opinions

  1. Analysis: China's social financing stable
  2. Smartphones disconnect people
  3. Recalling Faulty Vehicles
  4. Puzzlement hits historic towers' road to WCH
  5. Online amenities create utopia of idiots
  6. Economic ranking means less for public
  7. Commentary: What path will economy take
  8. Growth of for-profit hospitals should be limited
  9. Mahjong: to protect or to crack down?
  10. Commertary: Finding a dynamic balance

What’s happening in China

Boys will be girls

  1. Sina Weibo launches new charity platform
  2. Races canceled as students struggle to stay fit
  3. Chinese authorities urge school bus safety
  4. Survey team looks for rare white-flag dolphins
  5. Blackouts, school closures as snowstorms hit NE