(MENAFN- QNA) Japan's economy suffered its worst setback in more than five years in the second quarter of 2014, with Gross Domestic Product (GDP) revised down further to -7.1% annualized.
The latest reading raised bigger concerns the upcoming sales tax hike and whether its effect on the economy will be greater than expected. The Japanese economy has been suffering after the government decided to raise taxes.
Japanese news agency Kyodo reported that the figure was the worst since the first quarter of 2009, when the economy dived an annualized -15.0% following the economic downturn triggered by the 2008 global financial crisis.
The contraction in GDP, the total value of goods and services produced at home, corresponded to a 1.8% decrease from the previous quarter, the Cabinet Office said.
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