TOKYO, Feb. 17 (UPI) -- Japan saw disappointing GDP growth in the last quarter, after the economy grew by only 1 percent, despite stronger capital spending and increased consumption.
With a hike in sales tax expected in April -- part of Prime Minister Shinzo Abe's stimulus plan -- one of the major causes of worry is Japan's weak exports and a trade deficit that is growing because of increased imports. Weak GDP growth could lead to an extended stimulus by the Bank of Japan and more action will be needed from Abe to help the country become more competitive in the world market.