Japan's Economy Slows, Missing Growth Forecasts: A Deeper Dive into the Consequences Jean's economy has been dealt a significant blow as the latest data reveals a sluggish growth rate of 0.3 percent in the second quarter, falling short of initial forecasts. The underwhelming performance can be attributed to a decline in consumption and capital spending, posing significant concerns for the country's economic trajectory. As the world's third-largest economy, Japan's slowdown is likely to have far-reaching implications for the global market. Key Highlights: Sluggish GDP growth: Japan's GDP rose by a mere 0.3 percent in the second quarter, missing initial forecasts and sparking concerns about the country's economic momentum. Decline in consumption: Weakened consumer spending, which accounts for roughly 60 percent of Japan's economy, has been a major contributor to the slowdown. Capital spending sag: A decline in capital expenditure has also hin...
The US says Trump has the last say, but the tariff truce between the US and China is in effect for the time being.
Following two days of negotiations in Stockholm to defuse a growing trade war between the two largest economies in the world that is endangering global growth, U.S. and Chinese officials decided Tuesday to seek an extension of their 90-day tariff truce.
President Donald Trump will have to decide whether to extend a trade truce that ends on August 12 or possibly allow tariffs to rise back to triple-digit levels, according to U.S. officials, who did not announce any significant progress.
Trump has negotiated trade agreements with the European Union, Japan, and other countries after months of threatening high tariffs on trading partners. However, these negotiations are complicated by China's dominant economy and control over global rare earth flows.
In May, both parties retracted their plans to impose triple-digit tariffs on one another, which would have effectively created a bilateral trade embargo. But in the absence of an agreement, global supply chains and financial markets may experience fresh unrest.
U.S. Treasury Secretary Scott Bessent told reporters that Trump will have the last say on whether to extend a truce.
U.S. Trade Representative Jamieson Greer added that another 90-day extension is an option.
"We'll update him on the procedure we followed here. We definitely had productive meetings in order to return with a positive report. However, he will decide whether to prolong the pause," Greer stated following discussions at the Swedish prime minister's office in central Stockholm, Rosenbad.
After talks in Geneva and London, Bessent said the agreements on the flow of Chinese rare earths were getting more refined and that the U.S. and Chinese officials would probably meet again in about 90 days.
"Good interpersonal relationships and mutual respect were being developed. "I believe we have a far better understanding of their agenda," he said.
The International Monetary Fund highlighted the stakes by increasing its forecast for global growth on Tuesday but identifying a possible tariff rate rebound as a significant risk.
According to Li Chenggang, China's top trade negotiator, both parties understand how important it is to keep their trade and economic ties stable and sound.
The discussions may lead to a meeting between Trump and Chinese President Xi Jinping later this year, although Trump denied actively seeking one and U.S. officials said the subject was not brought up.
Greer and Bessent emphasized the need for China to transition from a state-led, export-driven manufacturing economy to one driven by increased consumer demand, which would help U.S. exports. The Stockholm meetings also featured a lengthy discussion on the U.S. and Chinese economies.
SOURCE : NEW AGENCIES