Japan's GDP slump stirs stimulus chatter

By Dow Jones newswires

Yet aspects of the data, including a rise in inventories, led some economists to talk about additional public spending to boost the economy. "The latest data will likely have an impact on policy debate, adding a lot of fuel to calls for additional economic stimulus measures," said Toshihiro Nagahama, chief economist at Dai-ichi Life Research Institute.

The growth number, released Wednesday, was generally in line with expectations, and many economists kept up their view that the fall would be temporary. "Consumption in May and June rose compared to April, and I think that the possibility of a rebound is high," said Tomo Kinoshita, chief economist at Nomura Securities. "There's no reason to just look at this figure and be pessimistic.

Read more here: Business Spectator

    

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