Japanese economic data disappoint
Official figures from the Bank of Japan (BOJ)showed that the country’s GDP increased by 0.3% in Q4 2013, significantly below the 0.7% that economists had expected.
Japan’s economy grew at a much slower pace than expected at the end of last year, posing a challenge to policymakers as massive government stimulus efforts showed few signs of sparking momentum in consumption and exports.
According to Reuters, the data showed disappointing private consumption, business investment and shipments. Weak export growth was also blamed for the poor performance.
The news came as the Bank of Japan met to review its ultra-easy policy, with markets expecting the central bank to maintain the current pace of bond-buying stimulus.
The bad results raised questions about the limits of Abenomics – prime minister Shinzo Abe’s (pictured) unprecedented stimulus plan.