Japan slips back into recession

| May 19, 2011 | 0 Comments

The Japanese economy, which is the world’s third largest, has slipped back into recession following the devastating earthquake and tsunami which happened on 11 March.

The Cabinet Office has today revealed the economy contracted by 0.9% in the January to March period.

The economy has now contracted for two consecutive quarters – meaning it has once again entered a recession.

On an annual basis, meanwhile, the economy contracted by a worse than expected 3.7%.

However, while analysts say the economy will remain weak in the short-term, it has the strength to recover quickly.

The twin disasters have caused billions of pounds worth of damage and were expected to impact negatively on economic growth.

The Bank of Japan recently lowered its GDP forecast in light of the catastrophic events.

The disasters have also led to a slump in consumer and business confidence.

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