Home / Knowledge / News / Textiles / Japan sidesteps recession with 1.7% growth in Q1
Japan sidesteps recession with 1.7% growth in Q1
19
May '16
Japan sidestepped a recession with annualised growth of 1.7 per cent in the first quarter of 2016 as gains in government and consumer spending compensated for a slide in business investment.

But the data also underscored how the drive for a firm recovery in the world's third biggest economy is not gaining traction. Capital expenditure fell by 1.4 per cent during the quarter, indicating that businesses remain reluctant to spend.

The improvement in Japan's gross domestic product between January and March at a quarterly rate of 0.4 per cent came after a contraction in the last three months of 2015. A consumer spending rebound helped drive the better-than-expected figures but the leap year added another day of production – and spending – to the economy's performance.

The fresh data will do little to boost hopes for Prime Minister Shinzo Abe's faltering growth blitz. Abe's bid to revive Japan's economy, dubbed Abenomics, was shaken by a bloodbath on equity markets at the start of the year and a stronger yen which has gained 10 per cent against the dollar this year.

The latest GDP figures will throw a renewed focus on plans to raise Japan's consumption tax again.

Local media have suggested Abe will delay hiking the levy to 10 per cent from the current 8 per cent over concerns it could damage the already fragile economy.

A tax rise in 2014 which was touted as a key to neutralize Japan's enormous national debt, was blamed for ushering in a brief recession.

This week the government approved a 778bn yen ($7.1bn) extra budget in response to April's deadly earthquakes, which prompted factory shutdowns in southern Japan.

In January the Bank of Japan shocked markets with a negative rate policy, which was designed to boost lending to people and businesses, but the move was widely criticised as a desperate bid to prop up Tokyo's faltering economic plan.

Last month, a BoJ survey showed sentiment among Japan's biggest manufacturers dropped to its lowest level since Abe started his much-vaunted programme to boost growth.

The International Monetary Fund in April cut its growth forecast for Japan and warned that inflation would sink into negative territory during 2016. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search