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Japan's economic growth for April-June lower than expected

Japan's economic growth in April-June period was significantly lower than preliminary estimates, as new data made clear today, blighting hopes for a revival in internal demand.

The adjustments for the worse were no surprise because the figures affecting GDP exposed that capital expenditures growth in the second quarter decelerated in comparison to the first three months of the year.

And though the discouraging data might shake faith in state’s economic course and the business prospects, the anticipation among the economists is that the economy will be able to bring back strong levels of growth as increasing global demand spurs foreign sales and a tightening labour market brings up chances for wage rise.

Dai-ichi Life Research Institute’s Yoshiki Shinke says that the revision is tangible, however, economic growth and capital spending are quite robust. There are no reasons for a negative outlook in relation to the Japanese economy, hefty corporate income and uplift in business sentiment will ensure that capital expenditure stays high, he added.

Japan’s economy grew by annualized 2.5% in the second quarter, which is far less than the forecasted 4.0%, according to government data.

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