Japan economy shrinks
(02-14 10:50)
Japan's recession-hit economy shrank in the last quarter of 2012, official data showed on Thursday, as weak export demand overseas weighed but analysts pointed to brighter times ahead.
Tokyo said growth contracted 0.1 percent in the October-December quarter from the previous three months, the third quarter of contraction, as a new government vows to reflate the world's third-largest economy, AFP reports.
However, household consumption was improving and the country logged growth of 1.9 percent through all of 2012 compared with the previous year, when Japan was hammered by the quake-tsunami disaster, dealing a major blow to firms' domestic production and consumer demand.
Financial turmoil in Europe, an export-denting strong yen and a diplomatic row with major trade partner China have hurt Japan's economy, casting doubt on hopes it had cemented a recovery after the twin disasters.
The country has seen a mixed bag of economic data lately, with factory output rising 2.5 percent in December on-quarter while the trade picture remains hazy with Japan reporting a record trade deficit for 2012.
However, the yen has weakened in recent months, helping make the nation's exporters more competitive and boosting their latest earnings results.
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