Japanese economy shrinks into recession
November 17 , 2014
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.