Japan Economic Recovery May Falter After Second-Quarter Bounce

Japan’s 3.7 percent economic expansion last quarter ended the country’s worst postwar recession. The bounce may be as good as it gets.

Growth will slow to an annual 2.9 percent pace in the three months ending Sept. 30, according to the median forecast of 10 economists surveyed after yesterday’s gross domestic product report. Falling business investment and rising unemployment may hamper a recovery that has been fueled by $2.2 trillion in emergency spending by governments worldwide.

Companies including Nikon Corp. and NEC Electronics Corp. are cutting costs and firing workers to narrow losses. Japanese will head to the polls for a general election on Aug. 30 against a backdrop of unemployment approaching a record high and a public debt that’s almost twice the size of the economy.

Read Full Article from Bloomberg

- Posted: 2009-08-17 11:21:48

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