Japan Possibly Back In Recession After Brief Post-Disaster Rebound
Japan's economy declined much more than expected in the final quarter of last year due to slowing exports amid a weakening global economy and European recession. Concerns now rising that Japan may contract yet again this quarter point to rising risks of renewed recession in the world's third largest economy.
Japanese GDP shrank by 2.3% at an annualized rate in the fourth quarter of 2011, and declined by 0.9% for 2011, overall, its first calendar contraction since 2009. Over the four years spanning 2008-2011 Japan has had full calendar contractions in each year but 2010, by far making for its worst four year stretch of its decades long slump which began after its bubble economy began bursting at the end of the 1980s.
The sharp reversal in its economy being centered around export weaknesses points to potentially greater trouble in the global economy than has recently been reported, heading into 2012.
Japanese GDP shrank by 2.3% at an annualized rate in the fourth quarter of 2011, and declined by 0.9% for 2011, overall, its first calendar contraction since 2009. Over the four years spanning 2008-2011 Japan has had full calendar contractions in each year but 2010, by far making for its worst four year stretch of its decades long slump which began after its bubble economy began bursting at the end of the 1980s.
The sharp reversal in its economy being centered around export weaknesses points to potentially greater trouble in the global economy than has recently been reported, heading into 2012.