Country’s GDP contracted at an annualised 3.5% compared to last year
The Japanese economy contracted in Q3 2012 after exports took a massive hit with the global economic slowdown and anti-Japan protests continued in China.
The domestic consumption also continued to dwindle as the nation’s economy seemed to be heading towards recession.
The numbers are expected to increase pressure on Japan’s central bank after it eased monetary policy last month for the second month in a row by expanding an asset lending program.
Prime Minister Yoshihiko Noda said the numbers were tough and he would consider further measures with urgency.
JP Morgan economist Masamichi Adachi said that Japan’s recession was likely to be short, however, as positive growth would see a revival in the first quarter of 2013 with an increase in exports.
But economists elsewhere are wary of Japan’s rocky relations with China, stating that recovery could take longer if this worsened.
Japan is the world’s third-largest economy but it continues to be eclipsed by the emerging Asian economies that are seen as more stable and lucrative alternatives.
No comments yet