Subscribe to the BlogAfter you have grown to your potential, how do you grow? That is one question many a CEO has spent sleepless nights on. That is the question which is haunting Japan also. As Japan's economy grew by less than first estimated in the final quarter of 2009, the questions are coming up thick and fast.
The Cabinet Office said the economy expanded by 0.9% between October and December of last year, down from its initial estimate of 1.1%. The figures showed domestic spending was less than first calculated, as was investment and stockpiling by firms. On an annualised basis, economic growth was 3.8% in the quarter, down from the initial estimate of 4.6%. The downward revision in economic growth is likely to increase pressure on the Bank of Japan to ease monetary policy.
However, with interest rates already down to 0.1%, it does not have much room to move.