Japan GDP grows 0.2 per cent in April-June as exports fall

TOKYO – Japan reports its economy grew at a slower than forecast 0.2 per cent annual rate in the April-June quarter, sapped by weaker exports and business investment.

The Cabinet office reported Monday that growth was flat on a quarterly basis. This adds to pressure on the Bank of Japan to take further action to stimulate stagnating corporate spending.

The economy expanded at a 0.5 per cent rate in the January-March quarter.

Prime Minister Shinzo Abe recently proposed 28 trillion yen ($267 billion) in spending initiatives meant to get consumers and businesses to spend more money and support the stalling recovery.

A recent strengthening in the value of the Japanese yen, and weaker oil prices, have slowed progress toward a 2 per cent inflation target set by Abe and the central bank.