Japanese economy contracts in Q4
Official data today revealed Japan’s economy, which is now the world’s third largest, contracted by 0.3% in the final three months of 2010.
While it was marginally less than the 0.5% fall expected by analysts, it still represented the first contraction in five quarters.
However, despite the contraction, analysts expect an export-driven recovery this year.
Meanwhile, on an annual basis, the economy contracted 1.1% – this was attributed to the expiry of Government incentives for low-emission cars.
The figures come on the same day it was revealed that China is now officially the world’s second largest economy – taking over from Japan, which slides into the third place.