Growth of Japanese economy misses expectations

<p>The Japanese economy is growing slower than anticipated.</p>

The growth of the Japanese economy has slowed, with the country's expansion in the last three months failing to meet the expectations of analysts.

New data for the period between April and June has shown the Asian nation's economy grew by 0.6 per cent – an annualised expansion of 2.6 per cent – but this was well off predictions.

The annual rate had been 4.1 per cent in the first three months of the year, reports BBC News.

Speaking to the news provider, Takeshi Minami from Norinchukin Research Institute Tokyo explained prime minister Shinzo Abe has succeeded in boosting consumer sentiment and spending. However, he noted companies have not been encouraged to spend more and raise wages.

"As such, it remains unclear if growth could be sustained in the long run," said Mr Minami.

On the back of the news of the Japanese economy's growth in the second quarter of the year, the Nikkei had a slow start to the week and recorded a 0.1 per cent rise in its value.

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