The Japanese economy contracted in the April-June period by 1.6 percent over the same period last year. The contraction is mainly due to the decreasing consumption. The shrinkage is smaller than analysts had expected.
Compared to the first quarter there was a fall of 0.4 per cent. The government announced Monday. Observers assumed a decline of 1.9 percent.
The consumption of households accounts for 60 percent of the total economy, and now it appears that the Japanese have almost one percent spent less. Beside were also business investment 0.1 percent.
For the period January-March, economic growth was Monday or significantly revised upwards to 4.5 pc.
According to analysts, the negative figures put pressure on the government of Shinzo Abe, which in 2012 launched a reform program (Abenomics) to get the Japanese economy out of deflation spiral. This seemed to work in the short term, but according to some it is even more necessary, such as labor market reforms and the dismantling of protectionist measures.
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