Japan 's 'quintuple dip' recession

Japan 's 'quintuple dip' recession delivers a fresh blow to Abenomics
The economy shrank for the second quarter in a row for the fifth time in seven years, figures showed, increasing the pressure on Shinzo Abe
Consumer spending grew in the last quarter but business investment dragged the Japanese economy lower, figures showed on Monday.
Consumer spending grew in the last quarter but business investment dragged the Japanese economy lower, figures showed on Monday. Photograph: Franck Robichon/EPA
Reuters
Monday 16 November 2015 00.52 GMT Last modified on Monday 16 November 2015 02.52 GMT
Share on Pinterest Share on LinkedIn Share on Google+
Shares
121
Comments
220
Save for later
Japan has slid back into recession for the fifth time in seven years amid uncertainty about the state of the global economy, putting policymakers under growing pressure to deploy new stimulus measures to support a fragile recovery.


Abenomics 2.0 – PM updates plan to refresh Japanese economy
Read more
The world’s third-largest economy shrank an annualised 0.8% in July-September, more than a market forecast for a 0.2% contraction, government data showed on Monday.

That followed a revised 0.7% contraction in the previous quarter, fulfilling the technical definition of a recession which is two back-to-back quarterly contractions. It is the fifth time Japan has entered recession since 2008, a so-called “quintuple dip”.


The Nikkei share average dipped sharply by at the opening of trade on Monday as the poor figures compounded nervousness on markets in the wake of the Paris terror attacks. But it recovered to just 1% down at lunchtime on the hope that the news would force policymakers to launch another round of stimulus measures.

“The headline was weak, but the market is shifting to expectations for more measures,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management.

The yen rose slightly, reflecting its safe haven status against the euro.

But the outlook for the Japanese economy remains weak. Many analysts expect the economy to grow only moderately in the current quarter as companies remain hesitant to use their record profits for wage rises, underscoring the challenges premier Shinzo Abe faces in pulling the country out of stagnation with his “Abenomics” stimulus policies.

The dismal reading may affect debate among politicians and policymakers on how much fiscal spending should be earmarked in a supplementary budget that is expected to be compiled this fiscal year.


Private consumption, which accounts for about 60% of the economy, rose 0.5% from the previous quarter, roughly in line with forecasts.

Advertisement

But capital expenditure fell 1.3%, which was more than expected. External demand added 0.1 percentage point to GDP growth, while domestic demand shaved 0.3 point off growth, the data showed.

The weak data would be of little surprise to many Bank of Japan officials, who had largely factored in the recession and expect growth to rebound in coming quarters as consumption and factory output show signs of a pick-up.

While the data will be closely scrutinised by the policymakers, the BOJ is widely expected to keep monetary policy steady at its rate review this week, analysts say.

Last month the BOJ cut its economic growth and inflation projections but held off on expanding stimulus, hoping that the economy recovers well enough to accelerate inflation to reach the its ambitious 2% target.

Topics
Japan Shinzo Abe Global economy Chinese economy Stock markets More…
Share on Pinterest Share on LinkedIn Share on Google+ Save for later

Kết quả (Việt) 1:

Nhật bản suy thoái kinh tế 'quintuple nhúng' cung cấp một đòn tươi cho AbenomicsNền kinh tế giảm mạnh trong quý thứ hai trong một hàng cho thời gian thứ năm trong bảy năm, con số cho thấy, tăng áp lực trên Shinzo Abe Chi tiêu tiêu dùng đã tăng trưởng trong quý cuối nhưng kinh doanh đầu tư kéo nền kinh tế Nhật bản thấp hơn, con số cho thấy ngày thứ hai. Chi tiêu tiêu dùng đã tăng trưởng trong quý cuối nhưng kinh doanh đầu tư kéo nền kinh tế Nhật bản thấp hơn, con số cho thấy ngày thứ hai. Ảnh: Franck Robichon/EPAReutersThứ hai 16 tháng 11 năm 2015 00.52 GMT Last modified ngày thứ hai 16 tháng 11 năm 2015 02.52 GMTChia sẻ trên Pinterest chia sẻ trên LinkedIn chia sẻ trên Google +Chia sẻ121Ý kiến220 Tiết kiệm cho sau nàyNhật bản đã trượt trở lại vào suy thoái kinh tế cho thời gian thứ năm trong bảy năm giữa sự không chắc chắn về tình trạng của nền kinh tế toàn cầu, việc hoạch định chính sách theo ngày càng tăng áp lực để triển khai các biện pháp kích thích mới để hỗ trợ một phục hồi dễ vỡ.Abenomics 2.0-PM Cập Nhật kế hoạch để làm mới kinh tế Nhật bản Tìm hiểu thêmKinh tế lớn thứ ba của thế giới giảm mạnh một annualised 0,8% trong tháng bảy-tháng chín, nhiều hơn một thị trường thời cho sự co 0,2%, dữ liệu chính phủ cho thấy ngày thứ hai.Mà theo sau sự co 0,7% sửa đổi trong quý trước đó, hoàn thành định nghĩa kỹ thuật của một suy thoái kinh tế mà là hai dung back-to-back hàng quý. Đó là Nhật bản thứ năm của thời gian đã đi vào suy thoái kinh tế kể từ năm 2008, một cái gọi là "quintuple nhúng".The Nikkei share average dipped sharply by at the opening of trade on Monday as the poor figures compounded nervousness on markets in the wake of the Paris terror attacks. But it recovered to just 1% down at lunchtime on the hope that the news would force policymakers to launch another round of stimulus measures.“The headline was weak, but the market is shifting to expectations for more measures,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management. The yen rose slightly, reflecting its safe haven status against the euro.But the outlook for the Japanese economy remains weak. Many analysts expect the economy to grow only moderately in the current quarter as companies remain hesitant to use their record profits for wage rises, underscoring the challenges premier Shinzo Abe faces in pulling the country out of stagnation with his “Abenomics” stimulus policies.The dismal reading may affect debate among politicians and policymakers on how much fiscal spending should be earmarked in a supplementary budget that is expected to be compiled this fiscal year.Private consumption, which accounts for about 60% of the economy, rose 0.5% from the previous quarter, roughly in line with forecasts.AdvertisementBut capital expenditure fell 1.3%, which was more than expected. External demand added 0.1 percentage point to GDP growth, while domestic demand shaved 0.3 point off growth, the data showed.The weak data would be of little surprise to many Bank of Japan officials, who had largely factored in the recession and expect growth to rebound in coming quarters as consumption and factory output show signs of a pick-up.While the data will be closely scrutinised by the policymakers, the BOJ is widely expected to keep monetary policy steady at its rate review this week, analysts say.Last month the BOJ cut its economic growth and inflation projections but held off on expanding stimulus, hoping that the economy recovers well enough to accelerate inflation to reach the its ambitious 2% target.TopicsJapan Shinzo Abe Global economy Chinese economy Stock markets More…Share on Pinterest Share on LinkedIn Share on Google+ Save for later