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Japan's in recovery mode, says Chief Cabinet Secretary Suga

Published on Aug 2, 2014 3:10 PM
Japan's Chief Cabinet Secretary Yoshihide Suga speaks during a press conference at the Foreign Correspondents' Club of Japan in Tokyo on July 11, 2014. -- PHOTO: AFP

TOKYO (REUTERS) - Japan's Chief Cabinet Secretary Yoshihide Suga said on Saturday that Japan's economic recovery remained underway, citing Prime Minister Shinzo Abe's "Abenomics" economic policies as a major factor.

Japan's economy grew rapidly in the first quarter, though economists expect to see a sharp contraction, the first in almost two years, when second quarter gross domestic product data is released on Aug. 13.

"Without a doubt, the economy is in recovery mode," Mr Suga told  an audience at an event in Tokyo hosted by Japan Akademeia, a non-partisan organisation.

The GDP data is expected to show the economy shrank at an annualised 7.1 per cent in the second quarter, according to the median forecast in a Reuters poll of 25 economists.The economy was dragged down in the April-June quarter by weaker-than-expected consumer spending after a sales tax hike and disappointing factory output, a Reuters poll showed. Exports, a main driver in the economy, also remained sluggish.

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