Japan’s economy remained in recession late last year, shrinking 0.4 percent in annualized terms for the third straight quarter of contraction. (File photo)
The Japanese government says the Asian country’s economy contracted for the third consecutive quarter in the three months to the end of December 2012.
The economy of the world’s third economic heavy-weight shrank 0.1 percent in the October-December period compared with the previous three months, which is equivalent to an annualized dip of 0.4 percent in gross domestic product, Cabinet Office data showed on Thursday.
“The economy has contracted for three straight quarters, but the third quarter was the worst,” said Shuji Tonouchi, strategist with Mitsubishi UFJ Morgan Stanley Securities.
“The biggest reason for the decline in gross domestic product (GDP) is external demand was weak and domestic demand did not recover as quickly as we thought,” Tonouchi said.
Japan’s central bank (BOJ) has kept its interest rates between zero to 0.1 percent, but rejected to keep them at that level until its target of achieving a two-percent inflation rate is met.
Japan entered recession in November 2012, when the country suffered the sharpest rate of contraction following the devastating tsunami of 2011.
Many experts blamed the contractions on the halt to Japan’s exports, due to the low demand in the markets of China, the Unites States and the eurozone.
Japan’s car industry also suffered great loss following anti-Tokyo protests across China in September 2012 over a decision by the Japanese government to nationalize parts of a group of islands in the East China Sea disputed by Tokyo and Beijing.
TE/HMV
