Economic data issued by the Japanese government proved what many economists have feared. Japan, the world’s third largest nation by GDP, has gone into a recession, joining the largest area by GDP-the Eurozone. Add this to America, where growth has been barely 2%, and almost the entire developed world continues to struggle mightily.
The Japan Cabinet Office issued fourth quarter figures which showed a GDP drop of 0.1% compared to the third quarter, and 0.4% on an annual basis.
In a summary and translation of that announcement, MarketWatch reporters wrote:
Japan’s economy chalked up a third quarter of contraction in the
October-December period, the Cabinet Office reported Thursday, with gross
domestic product shrinking 0.1%, or a drop of 0.4% on an annualized basis. The
result confounded expectations for a 0.1% rise in GDP, according to separate Dow
Jones Newswires and Reuters surveys. Still, the contraction was smaller than the
3.5% annualized fall in July-September. Nikkei Stock Average futures pared their
gains in premarket trade in Singapore after the data, though the Japanese yen
showed muted reaction.