Investing.com - Japan’s economy contracted more than expected in the fourth quarter, according to data released on Monday, as consumer spending and exports declined.
The Cabinet Office reported that gross domestic product contracted by an annualized 1.4% in the three months to December, worse than expectations for a contraction of 1.2%, following a revised 1.3% expansion in the second quarter.
Business spending rose 1.4% in the fourth quarter from the previous three months, but private consumption, which makes up 60% of GDP, dropped 0.8%, the report said.
For 2015 as a whole, Japan’s economy expanded just 0.4%, as a 2.7% increase in exports helped offset a 1.2% drop in private consumption.
The weak data underlined the difficulties facing policymaker’s efforts to boost inflation in the world’s third-largest economy.
Last month the Bank of Japan shocked markets with a decision to adopt negative interest rates amid concerns that slowing growth in China amid heightened volatility in global markets will add to the risk of deflation.