Japan enters recession

The world’s second largest economy, Japan, has fallen into recession in the last quarter for the first time since 2001, and joins Germany, Italy, Spain and Ireland, who have all experienced two successive quarters of contraction in their economy.

Analysts have indicated that it is likely to be a long and pronounced recession although the Nikkei 225 stock average responds by finishing up by 60 points as the Yen weakens.

Gross Domestic Product has fallen by 0.4 percent in the three months to the end of September, although economists had predicted a 0.1 percent growth for the economy.

That is why the fact that the export-dependant nation is falling into recession for the first time in seven years has come as a shock, even though measures were taken by the major economic players in terms of emergency plans.

The economy contracted 0.1% in the third quarter and by 0.9% in the second, following 2001 when the country fell into recession following the dot.com boom and bust.

The Economic and Fiscal Policy Minister, Kaoru Yosano, indicated today that, given the fact the global economy is decelerating, Japan’s downturn will become more pronounced as the crisis spreads deeper into the emerging economies and the demand for exports slows even further.

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