Japan slips into recession
Japan unexpectedly slipped into a recession after its economy shrank for the second quarter in a row, with analysts warning another contraction may also hit in the current quarter.
Preliminary data from Japan’s Cabinet Office shows gross domestic product (GDP) fell an annualised 0.4 per cent in the October-December 2023 period and followed a 3.3 per cent slump in the three months prior.
The two consecutive contractions means Japan is in a technical recession, although experts note that may change because the GDP data is often subject to large revisions, reports the Japan Times.
The figures have seen the country lose its title as the world’s third-biggest economy, in dollar terms, to Germany.
Japan’s nominal GDP stood at US$4.2 trillion (NZ$6.9tn) in 2023, while Germany’s came in at $4.5tn.
Some analysts are forecasting another contraction in the January-March quarter as weak demand in China, reduced private consumption and production halts at a subsidiary of Toyota Motor Corp, suggest a difficult economic recovery ahead, reports Reuters.
