Japan back in recession as earthquake cuts consumption

May 19, 2011 04:56

The contraction in the first three months of this year was bigger than expected, with most analysts expecting the annualized rate would show a contraction of about 2%.

BBC News


Gross domestic product shrank 0.9% in the first three months of the year, the Cabinet office said, giving an annualised rate of contraction of 3.7%.

Analysts say consumption and exports were worst hit.

Japan’s economy has now contracted for two quarters in a row, the generally accepted definition of a recession.

Japan sank into a recession during the global financial crisis, but had emerged from it in 2009.


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