Japanese growth slows as sales tax hike looms

TOKYO, Mar 10 (AFP): Japan's economy grew at a slower pace than initially thought in the last quarter of 2013, revised data showed Monday, underscoring concerns about the pace of recovery under Prime Minister Shinzo Abe's policy blitz.

The fresh figures will turn the focus on to Bank of Japan policymakers as they start a two-day meeting, with speculation they could unveil further monetary easing measures to counter a possible slowdown from a sales tax rise next month.

There are fears the rate hike-seen as crucial to bringing down Japan's massive national debt-will hit consumer spending and in turn dent the country's nascent recovery.

The world's number-three economy expanded 0.2 per cent in the quarter to December and 1.5 per cent through 2013, the latest data showed. That compared with earlier results showing gross domestic product grew 0.3 per cent for the October-December period and 1.6 per cent in 2013.

However, the new figures still mark Japan's best annual performance in three years, as Abe's growth blitz of big spending and monetary easing-dubbed Abenomics-rippled through the economy. The economy grew 1.4 per cent in 2012 and contracted 0.5 per cent in 2011 owing to the March 11 quake-tsunami disaster and subsequent nuclear crisis.

"The recovery... lost pace in the second half of the year," said London-based Capital Economics.

"Nonetheless, it would be premature to conclude that Abenomics has failed based on these figures alone.