The Japanese economy contracted more than economists forecast in the fourth quarter that ended in December 31, as the nation's exports fell led by the strong yen and the weakness in global demand.
The Japanese economy reported the preliminary figures for the fourth-quarter GDP, where the nation's GDP shrank to 0.6%, compared with the prior reading of 1.4%, which was revised to 1.7%, yet it missed economists' forecast of 0.3% decline.
On the other side, the annualized gross domestic product shrank 2.3% during the prior quarter that ended in December 31 compared with the revised reading of 7.0%, which was initially 1.4%, and it missed expectations of 1.3% decline.
The reconstruction work after the earthquake may support a return to growth this quarter even the strong currency cut export earnings, and worsening losses the Japanese companies such as Sony Corp.
Manufacturers have also been hurt by flooding in Thailand that disrupted production, while energy imports because of nuclear shutdowns lead to the first annual trade deficit since 1980, yet some economists speculate that this contraction will be temporary, as the overseas economies, such as the U.S., are starting to pick up.
Moving to the nation's currency, as the USD/JPY pair is dramatically advancing after the release of the nation's GDP which showed and obvious contraction, as the pair is currently trading at 77.68, after recorded its highest price at 77.77 and lowest at 77.51.
Disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk
0 comments:
Post a Comment