Japan teetering on brink of recession after output shrinks at fastest pace for nearly six years
Japan is teetering on the brink of recession after output shrank at the fastest pace for nearly six years.
Gross domestic product in the country fell at an annual rate of 6.3 per cent in the final three months of 2019.
On the brink: Another quarter of contraction at the start of 2020 would leave Japan in recession
Another quarter of contraction at the start of 2020 – which analysts fear is likely given the coronavirus outbreak – would leave the world’s third largest economy in recession. European economies are also struggling with Germany facing a recession as well.
The economic downturn in Japan follows an increase in a sales tax from 8pc to 10pc in October. It was also hit by Typhoon Hagibis and coronavirus, which has disrupted supply chains and hammered tourism from China.
Kerstin Braun, of trade finance provider Stenn Group, said the slump in Japan ‘is a worrying sign if you are looking for an indicator of the health of the global economy’.