Japan’s Economy Shrinks 0.4%, Confirming Recession
Always nice to wake up to new news of a recession on Monday morning.
Nov. 17 (Bloomberg) — Japan’s economy, the world’s second largest, unexpectedly shrank in the third quarter, entering the first recession since 2001 as companies cut spending.
Gross domestic product fell an annualized 0.4 percent in the three months ended Sept. 30, the Cabinet Office said today in Tokyo. Economists predicted the economy would grow 0.1 percent after contracting a revised 3.7 percent in the previous period.
The slowdown may deepen as the global financial crisis hurts exports, prompting companies from Toyota Motor Corp. to Canon Inc. to slash profit forecasts and cut investments. Japan has the lowest interest rates among the 20 biggest economies and public debt that exceeds 180 percent of GDP, limiting the government’s ability to stimulate growth.