Now Japan is facing the global recession trend, shrinking its economy by 0.4%.
Quarter-on-quarter, Japan’s economy shrank 0.1 percent, today’s report showed. Capital spending fell 1.7 percent from the previous three months, compared with economists’ expectations of a 2 percent drop.
Japan’s economy is the world’s second largest, unexpectedly shrank in the third quarter.
According to the cabinet office, The slowdown may deepen as the global financial crisis hurts exports, prompting companies from Toyota Motor Corp. to Canon Inc. to slash profit forecasts and cut investments.
Gross domestic product fell an annualized 0.4 percent in the three months ended Sept. 30, the Cabinet Office said.
In the mean time, leaders from the Group of 20 nations this weekend agreed to take a “broader policy response” by using interest-rate cuts and fiscal stimulus to shore up the weakening global economy.
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