"Japan's economy can emerge from recession in the first quarter as consumer spending and exports are expected to pick up"
- Yasuo Yamamoto, senior economist at Mizuho Research Institute
Sales at Japan's retailers struggled to regain pace at the beginning of this year, reflecting customers' unwillingness to increase spending even despite Shinzo Abe's pledge to introduce more bold measures soon. Japanese retail sales for January dropped 1.1% on an annual basis, compared to a 0.4% rise in December, the Ministry of Economy, Trade and Industry reported on Wednesday. Despite a decline, reading came above analysts' expectations, which called for a 1.4% decline. On a monthly basis, sales climbed 2.3% in January, well ahead of economists' expectations for an increase of 0.9%, following the flat reading in the prior month. Weak domestic demand and a huge shrinkage in exports in December in Japanese economy underline the need for bolder monetary and fiscal stimulus from the government and nation's central bank to boost growth and end decades of deflation.
"These are pre-Abe numbers," said Takuji Okubo, chief economist at Japan Macro Advisors who formerly worked at Goldman Sachs Group Inc. "He was only prime minister for about the last week of the quarter."
"Japan's economy can emerge from recession in the first quarter as consumer spending and exports are expected to pick up," said Yasuo Yamamoto, senior economist at Mizuho Research Institute.
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