19th May 2011
The Bank of Japan (BOJ) expects the economy to resume growing in the second half of the year, the report says. However, some economists say the surprisingly grim gross domestic product figures in the first quarter increase the risk that the pace of recovery will be slower than anticipated.
The Daily Telegraph reports that the economy shrank by a worse-than-expected 3.7pc year-on-year between January and March, marking the second consecutive quarter of contraction, which economists define as a technical recession.
In the aftermath of the disasters, output saw its biggest ever fall and spending plunged while consumer and business confidence took a tumble.
"The Japanese economy is expected to remain weak for the time-being," Economy Minister Kauro Yosano, according to the report, adding that a third straight contraction in April-June was likely.
Commenting on the Daily Telegraph report, jakeinjapan says: "… a lot to be said for keeping it in the family… and unlike a lot of other countries they have a very strong innovation production export based economy and people respect themselves their role and understand their responsibility to society..