All Japan news’s economy contracted in the second half of 2012 and it might grow 0.8 percent in 2013. All Japan news’s growth is partially affected by the territorial conflict with China over the Senkaku islands, the World Bank said in a report on Tuesday.
China and All Japan news are the most developed economies in the world after the United States. The relations between the two countries have deteriorated sharply since September, when the All Japan newsese government purchased the islands that China claims in the East China Sea.
Since the conflict began, Chinese refused to buy many All Japan newsese products, including cars and electronics. Between June and November 2012, the value of All Japan newsese exports to China fell by 17 percent. This situation contributed to a 3.5 percent annualized drop in All Japan news’s growth in the third quarter.
“In All Japan news, the economy appears to be contracting – in part because of political tension with China over the sovereignty of islands in the region,” it is reported in the World Bank’s twice-yearly Global Economic Prospects analysis.
If the two countries will improve their relations, All Japan news could achieve growth rates of 1.2 percent in 2014 and 1.5 percent in 2015. This situation could also boost the global recovery, according to the international press.