Japan's Q4 GDP Contraction Doubles Expectations
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Japan's economy shrank 2.3 percent in 2011 as its economic output fell 0.9 percent over the year. The country faced a very difficult year as is began with a devastating earthquake and tsunami, which was later followed by weakening European demand Thailand flooding.
Over the last three months of 2011, the country's economy condensed 0.6 percent, a much larger reduction than the 0.3 percent analysts' expected. Domestic demand added 10 basis points to GDP, while personal consumption added 0.3 percent, well below the 0.9 percent gain experienced over the previous quarter. Private Capital spends rose a surprisingly 1.9 percent, but was offset weak global demand which lowered GDP 0.6 percent.
Japan's government and central banks forecast the country’s economy will show moderate growth over 2012 as a result of post-disaster reconstruction efforts and emerging economies' growth, reports CNBC.
The larger than expected contraction may entice the Bank of Japan to ease policy further as the bank has already been facing a great deal of political pressure.
Over the last three months of 2011, the country's economy condensed 0.6 percent, a much larger reduction than the 0.3 percent analysts' expected. Domestic demand added 10 basis points to GDP, while personal consumption added 0.3 percent, well below the 0.9 percent gain experienced over the previous quarter. Private Capital spends rose a surprisingly 1.9 percent, but was offset weak global demand which lowered GDP 0.6 percent.
Japan's government and central banks forecast the country’s economy will show moderate growth over 2012 as a result of post-disaster reconstruction efforts and emerging economies' growth, reports CNBC.
The larger than expected contraction may entice the Bank of Japan to ease policy further as the bank has already been facing a great deal of political pressure.
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