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Japanese economy shrinks into recession

  • Japan’s economy has fallen into a recession after contracting for two straight quarters in what is a huge setback to Prime Minister Shinzo Abe, media reports say.

    In the July to September quarter, the country’s GDP shrank by 0.4%, according to official figures, which is equivalent to 1.6% in annualized rate.

    A tax increase in April was a contributing factor to the falling growth.

    The new data has come as an unpleasant surprise as leading economists had predicted a 0.5% expansion.

    Abe is likely to call a snap poll for next month.

     

    Tagged as: Japan, economy, recession, second quarter, prime minister, Shinzo Abe, GDP, tax rise, business news