After delivering a much-anticipated statement on Japan's war legacy and engaging in a bruising legislative fight over defense laws, Prime Minister Shinzo Abe got a reminder on why he needs to return his focus to the economy.
With tepid wage growth making consumers unwilling to spend, the world's third-biggest economy snapped two quarters of expansion to contract 1.6 percent in the three months through June, slightly better than the median forecast of a 1.8 percent fall.
At a time when the economy was losing momentum, Abe's agenda was dominated by the war statement — key to improving relations with China and South Korea — and the fight to boost the role of the military. That battle led to a plunge in his popularity that could hamper his efforts to push ahead with some unpopular measures to revive growth.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.