Cherry blossoms bring little cheer to ailing Japan

THE Japanese economy managed to dodge a second recession since Prime Minister Shinzo Abe assumed office in late 2012; it would have been the fourth in five years. GDP expanded at an annualised 1.7% in 1Q’16 after contracting at an annual pace of 1.7% in 4Q’15. For four quarters in a row, Japan’s growth alternated between growth and contraction.

The underlying performance does not inspire confidence. The previous quarter’s growth was revised downwards, providing a lower base for comparison. Consumer spending seemed strong – boosted by the extra leap-year day in February. Business capital spending, however, fell.