Japan downgrades Q4 GDP as companies scale back spending

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TOKYO: Japan's economy expanded at a slower than initially reported pace in October to December, with firms tightening spending on plant and ...

TOKYO: Japan's economy expanded at a slower than initially reported pace in October to December, with firms tightening spending on plant and equipment and sharply cutting inventories as the coronavirus pandemic hit demand.

The reading, which was weaker than economists' median forecast for a 12.8 per cent gain, translates into a real quarter-on-quarter expansion of 2.8 per cent from October to December, versus a preliminary 3 per cent gain. "We expect the economy will pick up from the second quarter but it will be difficult to regain soon what it will lose in the first quarter."

 

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