Japan's economic growth slow down

Japan's economy shrank in the second quarter of the year, marking a setback for the government's reform policy. 

First three months economic growth was better than second three month (April-June). Economics growth contracted by 0.4% in this period.

Export and internal consumption played a vital role in this crisis.

Its likely to be said that This situation will create pressure on PM Shinzo Abe to revamp his reform programme of monetary and fiscal stimulus to boost growth.

Japan's economy shrank at an annualized pace of 1.6% in the quarter, following a revised expansion of 4.5% in the first quarter, official data showed.

Doubtful outlook

Japanese Economics Minister Akira Amari said the GDP contraction was due to weak exports to China and the US, as well as poor consumer spending as a result of bad weather.
The disappointing economic growth follows a recent run of weak data including exports and factory output, raising doubts about the outlook for the rest of the year.
In July, the International Monetary Fund had warned Tokyo, not to rely too much on the weak yen for long-term recovery.
Tokyo's reform efforts, dubbed Abenomics, were kicked off in 2012, and were aimed at getting Japan's economy out of deflation and back to growth.
While the program is credited with having achieved short-term growth, the government has struggled to deregulate the job market and open up some of the country's very protected industry sectors.