Japan faced a dramatic slide as companies fall 5.2% capital spending during the first quarter of the year. This is a big challenge to Japan's government to continue its momentum being known to be third-biggest in the world economy.
In the previous quarter, the country has experienced a 7.2% slide in spending not including software, as shown by the country's Ministry of Finance. Six economists from Bloomberg News surveyed the median forecast to a 5.5% decrease.
Prime Minister Shinzo Abe is still in a continued campaign to boost investment and wages. This can be done through fiscal and monetary incentives to be able to sustain confidence regardless of the economic weakening in Japan bond and stock markets. According to economist, Izumi Devailer, Abe can face struggles to be able to fulfill a pledge of restoration to private investment that would sum up to US$695 billion prior to the financial crisis in 2008. Plans for monetary easing has weakened Japan's currency yet boosted its stocks.
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