Following a second straight quarter contraction, Japan’s economy is now technically in a recession. Japan’s April-June GDP had to be revised to a 0.1% contraction at an annualized pace- a 0.03% decline from the previous quarter.
The revised data shows that following the July-September quarter GDP shrink of 0.9% , Japan is now considered to be in a recession.
“We had already said Japan was in a recession. Today’s number strengthened our case,” says Tomo Kinoshita, chief economist at Nomura Securities in Tokyo.
Despite the figures, the Japanese government urges people to remember that the recent diplomatic row with China, along with continued fallout from the tsunami and nuclear disaster have much to do with the disappointing figures.
Paul Hudson | Elite.