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

AEPC concern over apparel exports fall; envoys meet CEA

Apparel/Garments | On 17th Nov 2017

AEPC concern over apparel exports fall; envoys meet CEA

India’s Apparel Export Promotion Council (AEPC) has expressed concern ...

Moody's improves India's rating

Textiles | On 17th Nov 2017

Moody's improves India's rating

Moody's Investors Service has upgraded the Indian Government’s local...

Sweden in talks with Birlas for smart textiles project

Textiles | On 17th Nov 2017

Sweden in talks with Birlas for smart textiles project

Sweden is seeking a collaborative project with the Aditya Birla Group ...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search