Japan GDP growth disappoints as business investment falls

Japan’s gross domestic product grew by a smaller than expected 2.6 per cent in the second quarter, as business investment fell.

Preliminary estimates released by the Japanese government show the economy grew by less than expected ,with business investment falling by 0.4 per cent year on year.

Prime Minister Shinzo Abe’s “three arrows of reform” have attempted to revitalise the Japanese economy, and counteract the country’s deflation environment. The figures show an increase in exports, suggesting the yen is weakening in line with Mr Abe’s policies.

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Elsewhere, the GDP estimate for the first three months of the year was revised down from 4.1 per cent to 3.8 per cent.