Home / Knowledge / News / Textiles / Japan slips back into recession
Japan slips back into recession
17
Nov '15
Japan's economy shrank in the July-September quarter as the economy contracted 0.8 per cent, sending the country into a technical recession, according to media reports.

The preliminary data means the world's third-largest economy has contracted for a second consecutive quarter, marking a technical recession.

Growth was expected to decline after it fell a revised 0.7 per cent in the second quarter on weak domestic demand.

Japan has been in recession four times since the global financial crisis.

On a quarterly basis, growth fell 0.2 per cent in the third quarter from the previous one, weaker than forecasts of a 0.1 per cent decline.

The seasonally adjusted figure was also much lower than expectations of a 0.2 per cent drop.

Despite the declining growth, the government is positive that a recovery is underway.

Economics Minister Akira Amari, at a news conference after the data was published, noted a shortage of labor available for public works projects to stimulate the economy, highlighting a major constraint policymakers face - not enough suitable workers to build growth.

Amari nodded when asked if he saw "no need" to craft an extra budget to stimulate demand right away, despite US Treasury Secretary Jack Lew proposing earlier that Japan should provide more fiscal support to ensure it returns to growth - led by domestic demand.

"While there are risks such as overseas developments, we expect the economy to head toward a moderate recovery thanks to the effect of various (stimulus) steps taken so far," the minister said in a statement.

Economists said the weak data will put more pressure on the government and central bank to continue to stimulate the economy.

Japanese companies continue to be wary of using their record profits to raise wages and invest in the economy - a major challenge for Prime Minister's Shinzo Abe's "Abenomics" policies.

Business spending fell 1.3 per cent, against forecasts of a 0.4 per cent decrease. It also marked the second quarter in a row of declines.

But, private consumption, which accounts for 60 per cent of the economy rose 0.5 per cent from the previous quarter. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Marten Alkhagen
Swerea IVF AB

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

Suresh Patel
Sidwin Fabric

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Yash P. Kotak
Bombay Hemp Company

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

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search