Japan’s economy is flat during the second quarter
Japan’s economy almost stalled during the second quarter amid dropping exports as well as poor corporate investment, demonstrating the nation is still greatly dependent on government stimulus for growth.
The economy managed to expand an annualized 0.2% in the April-June quarter, which is weaker than a 2% expansion for the first three months of the year, as Japan’s government informed on Monday.
Japan’s economy would have contracted in the quarter without a soar in public investment. The government front-loaded infrastructure spending during the quarter, the first of Japan’s fiscal year. Prime Minister Shinzo Abe’s cabinet in early August officially approved a ¥28 trillion stimulus package, including ¥15,000 handouts to 22 million low-income folks, so the government spending should remain in the latter part of the fiscal year.
Financial experts expect exports to remain slow ahead, while hoping for more public spending to back growth.