TOKYO: Japan on Monday confirmed that the world’s third-largest economy shrank in the three months to September, stoking fears the country is slipping into a recession.
Financial turmoil in Europe, a strong yen that has dented exports and a painful diplomatic row with major trade partner China have dented Japan’s economy, dousing hopes it had cemented a recovery after the 2011 quake-tsunami disaster.
Some economists have warned the current quarter is likely to see another contraction, meaning two successive quarters of negative growth that would reflect a technical recession.
On Monday, official data confirmed earlier figures that showed Japan’s economy shrank 0.9 per cent in the July-September quarter, or down 3.5 per cent on an annualised basis.
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