Economy

Japan Misses GDP Increase on Downside

Japan’s gross domestic product (GDP) rose only 2.6% on an annualized basis in the second quarter, a deep disappointment.

There has been an effort to marginalize Japan despite the experimentation of its central bank and prime minister to jump-start its economy. Some of these efforts and the change in value of the yen may have benefited businesses, but they also have driven the nation’s debt to what is considered to be unsustainable levels.

As Japan is pushed toward the periphery of the assessment of global GDP in favor of growth in the developed world, led by China and India, the giant GDP engine of the United States and the recession in Europe, it is hard to remember that Japan is still the world’s third largest nation by that measure, and therefore, counts.

According to MarketWatch:

 Japan’s economy grew an annualized 2.6% in the April-June period, the Cabinet Officer reported Monday, cooling sharply from a rapid 4.1% gain in the first calendar quarter. The result compared to an average expectation for a 3.6% gain, according to separate surveys of economists reported by Dow Jones Newswires and Reuters. On a seasonally adjusted quarterly basis, gross domestic product rose 0.6% from the first quarter’s 0.9% increase. The economy benefitted from a relatively weak yen during the quarter, with the dollar spending most of the period above 95 yen after previously sitting below that level since 2009.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.