By MALILA Harris
JAPAN - An official statistics has shown that Japan GDP stature sharply slowed down. The economic growth in the country is continuously declining since early this year.
The gross domestic product rose by 0.1% between April and June, which is far lower than expected. Analysts predict the export led recovery is not up to the mark and moreover the yen hits a high against the dollar.
On the other hand the two competitor countries Germany and US shows significant economic growth. Germany and U.S have witnessed a significant growth of 2.2% and 2.4% respectively.
It is reported that Japan is among the wealthiest and flourishing countries in the world but recent parabolic curve of growth has made a concern for the government. In a report of World Bank shows the country in the first eight years expanded by only 5% while China rocketed by 261%.
The shares of the country also closed lower than expected, with Nekkei 225 fell lower than benchmark, seeing a negative of 0.6% to 9,196.67.
Dr Seijiro Takeshita, director of Mizuho International, indicted the wrong policy choice of Japanese government caused the slower down of economy.
"The problem for Japan was they were going for short-termism as far as policy was concerned. They were trying to put a bandage over a deep wound," he said.
"Private consumption didn't take off because our economy is still so dependent on external demand or exports.
In recent months yen has been rising against dollar and economic growth largely depends on export. The rising yen makes the country less competitive worldwide.
Economic Minsiter Satoshi Arai said the government had to coordinate with the Bank of Japan to take action against rising yen.
August 24, 2010 | 0
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