Japanese Q2 GDP Shocks: Nominal GDP Even Contracted at 3.7%
From WSJ MarketWatch.com
Tokyo shares slip as GDP data disappoint
Japan has joined "list of double-dip candidate economies," says analyst
TOKYO (MarketWatch) -- Japanese shares underperformed mostly sluggish regional markets Monday, after government data suggested the country's economic recovery is far more fragile than many had believed.
Japan's gross domestic product rose at an annualized pace of just 0.4% in real terms in the April-June quarter, government data showed, much worse than the median forecast for 2.3% growth in Dow Jones Newswires' poll of economists.
In nominal terms -- unadjusted for price trends -- the figures were even worse, with GDP falling 0.9% from the previous quarter, at an annualized pace of 3.7%...
"Japan's growth remains at the mercy of external demand," said Uwe Parpart, chief Asia strategist at Cantor Fitzgerald.
External demand contributed 0.3 points to April-June GDP, down from a revised 0.6 in the previous quarter.
And given the expected slowdowns of the U.S., European Union, and Chinese economies in the second half, this demand "will not hold up," Parpart said, and added that Japan has joined "the list of double-dip candidate economies."
Corporate capital investment rose 0.5% in the latest quarter, but domestic demand subtracted 0.2 percentage point from growth...
Tokyo shares slip as GDP data disappoint
Japan has joined "list of double-dip candidate economies," says analyst
TOKYO (MarketWatch) -- Japanese shares underperformed mostly sluggish regional markets Monday, after government data suggested the country's economic recovery is far more fragile than many had believed.
Japan's gross domestic product rose at an annualized pace of just 0.4% in real terms in the April-June quarter, government data showed, much worse than the median forecast for 2.3% growth in Dow Jones Newswires' poll of economists.
In nominal terms -- unadjusted for price trends -- the figures were even worse, with GDP falling 0.9% from the previous quarter, at an annualized pace of 3.7%...
"Japan's growth remains at the mercy of external demand," said Uwe Parpart, chief Asia strategist at Cantor Fitzgerald.
External demand contributed 0.3 points to April-June GDP, down from a revised 0.6 in the previous quarter.
And given the expected slowdowns of the U.S., European Union, and Chinese economies in the second half, this demand "will not hold up," Parpart said, and added that Japan has joined "the list of double-dip candidate economies."
Corporate capital investment rose 0.5% in the latest quarter, but domestic demand subtracted 0.2 percentage point from growth...