Japan Confirms End of 71-Month Economic Expansion, Short of Record

Economy

Tokyo, July 30 (Jiji Press)--The Japanese economy reached a peak in October 2018 after 71 months of expansion, failing to renew its postwar record growth run of 73 months, the Cabinet Office confirmed Thursday.

During the recent expansion period, the corporate sector was in good shape, but wage growth was top-heavy, leaving the household sector to hardly feel the economic boom.

The economic peak was provisionally determined by a Cabinet Office expert group chaired by Rissho University President Hiroshi Yoshikawa. The group will finalize the view at a later meeting.

"While the economy was facing labor shortages, wages were slow to rise, and private consumption did not grow," Yoshikawa told a press conference following the group's meeting on the day.

The last economic expansion, which started in December 2012, when Prime Minister Shinzo Abe returned to power, was led by the corporate sector against the backdrop of rising stock prices and the yen's weakening, produced by the Bank of Japan's massive monetary easing campaign.

[Copyright The Jiji Press, Ltd.]

Jiji Press