The Japanese economy shrank at an annualised rate of 1.6 per cent in the second quarter of 2015, in a blow to Prime Minister Shinzo Abe’s hopes of reviving the country’s growth.
The contraction, down from 4.5 per cent growth in the first quarter, came in slightly lower than market expectations of a 1.8 per cent fall but reflected broad-based weakness in demand across the economy, casting doubt on hopes for a recovery later in the year.
The growth figures suggest there is still little momentum to demand growth in Japan in spite of massive central bank stimulus, raising the prospect of additional monetary easing later this year.
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