Japan's economy has minimized more than expected in the
final quarter of 2015, dealing another blow to Prime Minister Shinzo Abe's undecided
bid to recover the world's number three economy.
Falling consumer spending and exports made the economy
contract by 1.4 percent in October-December compared to the last quarter of
2014, official data showed on Monday.
The slump was bigger than the forecast 1.2 percent shrinkage.
The data underscores the challenges Abe faces in dragging the
out of stagnation, as exports to emerging markets fail to gain enough momentum
to make up for low domestic demand.
With his incentive policies that gave big manufacturers windfall
profits, Abe had hoped to generate a positive cycle in which companies raise
wages and help boost household spending.
Instead, the data showed that private consumption, which makes
up 60 percent of the economy, fell 0.8 percent, exceeding market forecasts of a
0.6 percent decline.
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