Japan narrowly escapes recession in first half of 2001
The world’s second largest economy did not enter into recession in the first half of 2001, it was reported last week.
Figures for the first quarter of the year, as announced in June, suggested that the Japanese economy had shrunk by 0.2%. However, the government has now revised the figure upward, stating that growth in the first quarter was actually 0.1%. The reason given for the change was stronger personal consumption and more business investment than was earlier thought.
The news means that the country avoids a technical recession, which is defined as two consecutive quarters of negative growth. The revised figures are also seen as bolstering the prime minister Junichiro Koizumi’s hand as he tries to push through painful economic reforms. However, the Bank of Japan recently lowered its forecast for growth and eased interest rates in an attempt to boost the economy.
