Japan falls back into recession

Laura Dew
clock

Japan has dropped back into a recession, after GDP shrank for a second successive quarter.

GDP growth between July and September fell by 1.6%, far below analysts' expectations of growth of 2.1%. That followed a revised 7.3% contraction in the second quarter. The fall means the second stage of the proposed sales tax hike, which will be decided next month, may no longer go through. Japan's government had been hoping to raise the sales tax from 8% to 10% next October. Release of the weak data also comes just weeks after the Bank of Japan announced it was adding billions to its QE programme. The Nikkei 225 was down almost 3% this morning to 16,973 on the news.     Meanwhi...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot