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02-07-2024, 08:20 AM
The major highlight of the government's downward revision for growth early this year was that public investment contracted at a 1.9% rate. Earlier, it was estimated to have grown 3%. Private residential, or housing, fell 2.9% instead of the earlier estimate of a 2.5% contraction.
While the Federal Reserve in the U.S. has keep interest rates high to try to tame inflation that flared during the pandemic, Japan’s central bank has kept its benchmark rate near zero to keep credit cheap in hopes of spurring more spending and investment.
But price increases have have outstripped increases in Japanese workers' earning power, keeping demand relatively weak and sapping growth in an economy largely driven by consumer demand.
The latest data showed household spending falling in the first quarter of the year, in inflation-adjusted real terms.
https://japantoday.com/category/business...ing-prices
While the Federal Reserve in the U.S. has keep interest rates high to try to tame inflation that flared during the pandemic, Japan’s central bank has kept its benchmark rate near zero to keep credit cheap in hopes of spurring more spending and investment.
But price increases have have outstripped increases in Japanese workers' earning power, keeping demand relatively weak and sapping growth in an economy largely driven by consumer demand.
The latest data showed household spending falling in the first quarter of the year, in inflation-adjusted real terms.
https://japantoday.com/category/business...ing-prices
