Japan's economy shrinks more than forecast
News On Japan via Bloomberg -- Feb 13

Japan's economy contracted more than economists forecast in the fourth quarter as exports slid on weakness in global demand and strength in the yen. Gross domestic product shrank an annualized 2.3 percent in the three months ended Dec. 31, following a revised 7 percent expansion in the previous quarter, the Cabinet Office said today in Tokyo. The median forecast of 26 economists surveyed by Bloomberg News was for a 1.3 percent decline. A pick-up in earthquake reconstruction work may aid a return to growth this quarter even as gains in the currency pare export earnings, worsening losses for companies such as Sony Corp. (6758) The Bank of Japan may refrain from additional easing tomorrow as officials assess a mixed global picture, from improved U.S. employment to weaker Chinese trade and Europe's progress in taming its debt crisis, according to a Bloomberg News survey of economists.

Source: Bloomberg



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