Japan’s Q2 GDP growth slows as trade war hits business investment

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Japan’s Q2 GDP growth slows as trade war hits business investment

On Monday, the 9th of September 2019, revised Cabinet Office Data had revealed a downbeat depiction of Japanese economy during the second quarter of the year on an adjusted basis, while the economy of Japan, the third-largest across the world, grew at a slower pace than initially estimated, as a protracted Sino-US trade spat into its second year alongside the nation’s growing acrimony with neighbouring South Korea had weighed on business spending, suggesting a dire need to shore up monetary stimulus for the Bank of Japan.

On top of that, according to Monday’s (Sept. 9th) official economic data revealed earlier in the Asia-Pacific trading hours, Japan’s economy grew at a pace of 1.3 per cent during second quarter of the year on a year-on-year basis, much-weaker than a preliminary reading of 1.8 per cent.

Meanwhile, voicing a vociferous concern that Japan’s economy could even contract on Q4 this year, unless its trade dispute with South Korea resolved in a near-term outlook, a chief economist at Totan Research, Izuru Kato said on Monday’s (September 9th) Asian market closure, “There’s a possibility growth will turn negative in the October-December quarter.

If worries about such negative growth deepen (in the coming months), the Bank of Japan could consider lowering interest rates further into negative territory. ”