Tokyo, Aug 17 (IANS) Japan’s gross domestic product (GDP) shrank 1.6 percent in the second quarter of 2015, contracting for the first time in three quarters, government data said on Monday.
The data said real GDP of Japan in the three month period from April to June was down 0.4 percent from the previous quarter, Xinhua cited reports by the cabinet office.
Consumption, which accounts for about 60 percent of Japan’s GDP, dropped a real 0.8 percent on quarterly basis as consumer sentiment was dampened by rising prices of food and daily necessities, as well as unstable weather conditions in the reporting period.
Exports declined 4.4 percent, marking the first contraction in six quarters due to sluggish shipments of electronics devices amid slowing growth in some emerging economies and imports also saw a decline of 2.6 percent.
Corporate capital spending, which the government sees as the key to shoring up the economy, fell 0.1 percent for the first decline in three quarters.