Nine years of gains van­ish as Ja­pan’s GDP plunges by 7.8pc in one quar­ter

The Daily Telegraph - Business - - Business -

◆ Ja­pan tum­bled fur­ther into re­ces­sion in the three months to June as its GDP plunged by 7.8pc, writes

Tim Wal­lace.

It is the third con­sec­u­tive quar­terly fall in out­put and means the econ­omy is more than 10pc smaller than at its peak at the end of the third quar­ter last year. The se­ries of drops has ef­fec­tively wiped out all of the growth achieved since 2011, in­clud­ing the progress of the “Abe­nomics” poli­cies im­ple­mented by Ja­pan’s prime min­is­ter, Shinzo Abe, since the end of 2012. Ja­pan prefers to pub­lish its GDP num­bers on an an­nu­alised ba­sis, show­ing what would have hap­pened if the quar­terly growth rate was main­tained for a year.

With this cal­cu­la­tion, GDP fell by 27.8pc in the quar­ter.

At the same time Thai­land, which is more de­pen­dent on tourism, suf­fered a drop in GDP of al­most 10pc on the quar­ter. This fol­lowed a fall of 2.5pc in the first three months of the year, and leaves the econ­omy more than 12pc smaller than a year ago.

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