August 13, 2012 - 14:19 AMT
PanARMENIAN.Net - Growth in export-driven Japan slowed in the three months to June, official data showed on Monday, Aug. 13 with the debt crisis in Europe and the unsteady global economy crimping demand.
Gross domestic product grew a worse-than-expected 0.3 percent in the second quarter from the previous three months, the Cabinet Office said, a fourth straight rise but much slower than the brisk 1.3 percent seen in January-March.
The data came in significantly lower than market expectations for a 0.7 percent increase, as exports slowed and despite a ramp-up in government spending since the March 11 quake-tsunami disaster last year.
The economic growth translated into an annualised 1.4 percent rise, below the market forecast for 2.7 percent increase and sharply slower than the 5.5 percent expansion in the January-March quarter.
Adding to the headwinds being faced by the world's number three economy is the strong yen, which has made the country's exports less competitive in overseas markets.
However, Japanese economic and fiscal policy minister Motohisa Furukawa highlighted the growth of private demand to support his view for continued moderate growth, AFP reports.