GDP plunges during 2nd quarter
Japan’s economy took a dive during the second quarter of this year, recording its worst performance since the disaster of March 2011.
The country’s GDP dropped by 1.7 percent compared to the previous quarter, for an annualized growth rate of minus 6.8 percent.
Officials say the economy was pulled down by a decrease in consumer spending caused by the introduction of a higher sales tax in April.
Prime Minister Shinzo Abe says these negative figures were an expected consequence of the spending rush that occurred before the tax increase.
Abe says his government will wait for the 3rd quarter results before deciding when to raise the sales tax from the current 8 percent to 10 percent.