Japan's economic growth rate fell to 0.5 per cent in the third quarter, down from 0.9 per cent in the previous three months.
Between July and September, the country's gross domestic product fell to an annualised rate of 1.9 per cent, down from 3.8 per cent in the previous quarter.
Consumer spending tightened despite aggressive strategies from the government to end two decades of stagnating growth.
Prime minister Shinzo Abe's economic strategy, referred to as 'Abenomics', included boosting monetary stimulus, weakening the yen, and reforming public works to make Japan more competitive, encourage corporate investment and increase personal incomes. However, these long term goals have yet to take effect.
Part of the reason for the slower growth rate is due to a decline in net exports. Due to higher energy import costs affecting the balance of trade, exports to Asia have slowed.
Consumer spending is expected to increase moderately. The government intends to encourage corporate profits which, in turn, could result in a boost in salaries.
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