Japanese GDP Shrinks In Fourth Quarter On Exports Drop
Japanese economy recorded unexpected contraction during the fourth quarter of last year as to the drop in the nation’s exports and business investments, which presses on Japanese Prime Minister Shinzo Abe to spur the world’s third largest economy.
Japanese economy released its gross domestic product reading concerning the fourth quarter of last year, where the preliminary reading saw a 0.4% contraction, compared with a previous reading which showed a 0.9% contraction during the third quarter, while analysts expected a 0.1% growth.
On the annual basis, Japanese GDP recorded a 0.4% contraction the fourth quarter of last year, compared with a previous reading of -3.5%, while analysts’ expectations were 0.4%.
Japanese exports showed negative performance during for seven months through December, where the nation’s exports affected by Europe’s debt crisis and the recent dispute with China over the three islands which negatively affected on the nation’s shipments.
From another side, Economists estimate accelerated growth during the current year amid the recent efforts from Japanese Prime Minister Shinzo Abe to spur the nation’s economy and revive growth through fiscal and monetary policies.
Furthermore, the Bank of Japan approved last month Mr. Abe’s plans to double the nation’s inflation target to 2% amid the raised challenges and global instability adding that the open-ended asset purchases program will start in 2014.
Finally, Japanese yen saw narrowed trades after the data, as investors were expecting today’s readings, where USD/JPY pair traded near 93.2, while EUR/JPY pair traded near 125.41.