TOKYO (AP) — The Japanese economy shrank at an annual rate of 1.8% in the first quarter of this year, slightly better than the initial estimate at a 2.0% contraction, according to revised government data Monday.
Wage growth has been slow, and prices on imports have risen amid a decline in the Japanese yen against the U.S. dollar.
Another negative is the ongoing scandal involving improper vehicle model tests at several major automakers, including Toyota Motor Corp., which form the pillars of Japan’s brand power.
“The Japanese central bank’s stance will similarly be eyed closely, especially with the domestic currency weakness prevailing.
Japan suffers a serious labor shortage, as its birth rate continues to drop, hitting a record low last year.
Such demographic trends could prove more dangerous in the long run, according to some analysts, who worry Japan is especially weak in per capita output, and its dimming clout on the global stage might even lead to security risks.
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