Japanese economy contracts most for four years

Japanese economy contracts most for four years

In the third quarter, the Japanese economy shrank the most for more than four years due to the fact that Japanese companies reduced spending, thus threatening to affect the investment outlook next year because the export-reliant Asian country grapples with decelerating global surge as well as trade frictions.

The dive in the world's number three economy contributes to signs in Asia and the European bloc of weakening momentum. Recent data in Australia and China disclosed a deceleration in surge as well as stoking fears about the wider influence of the China-U.S trade conflict.

In the July-September quarter, the Japanese gross domestic product slumped at an annualized rate of about 2.5%. It appears to be the worst tumble since the second quarter of 2014 - from a 2.8% leap in the second quarter, as updated data from the Cabinet Office disclosed.

The decline, in part powered by a number of natural disasters, which made factories cut output, turned out to be deeper than an initial forecast of a 1.2% shrink and also versus experts’ median estimate for a 1.9% slump.

Additionally, the capital expenditure component of GDP went down by 2.8% from the second quarter, which is worse than the anticipated 1.6% tumble as well as the preliminary outcome of a 0.2% sink.

It happened to be the most impressive slump since the third quarter of 2009 due to the fact that retailers, wholesalers, information as well as communications machinery reduced spending, as the Cabinet Office data revealed.

Japan’s manufacturers' mood worsened for a second straight month in December. It’s expected to dive further.

While experts actually expect the Japanese economy to revive in the current quarter because factories ramped up output following the natural disasters, there’re fears that the China-U.S. trade conflict could affect global surge and impact export-led Japan.


British inflation jumps

The UK’s key inflation rate rallied in February, although stayed close to January's two-year minimum, assisting customers to preserve their spending power even as Brexit was still uncertain…

French surge strengthens

French quarterly surge is expected to strengthen in the first half of 2019 because consumer spending derives benefits from improving household incomes as well as reviving business confidence after protests at the end of 2018…

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera