Japan's economy shrank at an annualised pace of 12.7 per cent in the fourth quarter of 2008 - its worst performance since 1974 - as the recession deepened, official figures showed Monday.
Asia's largest economy contracted by 3.3 per cent in the three months to December from the previous quarter as exports and factory output slumped due to the global economic crisis, the government said.
It was a third straight quarter of negative economic growth for Japan, which is in the midst of its first recession in seven years.
Exports plunged 13.9 per cent from the previous quarter as demand for Japanese cars, electronics and other goods slumped in recession-hit overseas economies.
Business investment in factories and equipment dropped 5.3 per cent as companies scrambled to reduce their costs to cope with the recession.
Household spending slipped 0.4 per cent as consumers tightened their belts following a wave of job cuts by Japanese companies.
The figures were even worse than the average analyst forecast for an annualised contraction of 11.6 per cent.
The pace of the contraction also picked up sharply compared with the three months to September, when the economy shrank 0.6 per cent from the previous quarter.
Japan’s economics minister warned shortly after the data was released that Japan faces the worst economic crisis since World War II, and that it would not be able to bounce back until the global economic climate improves.
"This is the worst ever crisis in the post-war era. There is no doubt about it," Economic and Fiscal Policy Minister Kaoru Yosano said.
"The Japanese economy, whose growth is heavily dependent on exports of automobiles, machinery, and IT equipment, was literally battered" by the global downturn, he told a news conference.
"Japan alone won't be able to recover. The economy has no border. It is our responsibility to rebuild the domestic economy for other countries."
The government will consider fresh stimulus measures to revive the economy, Yosano said.
Asia's largest economy contracted by 3.3 per cent in the three months to December from the previous quarter as exports and factory output slumped due to the global economic crisis, the government said.
It was a third straight quarter of negative economic growth for Japan, which is in the midst of its first recession in seven years.
Exports plunged 13.9 per cent from the previous quarter as demand for Japanese cars, electronics and other goods slumped in recession-hit overseas economies.
Business investment in factories and equipment dropped 5.3 per cent as companies scrambled to reduce their costs to cope with the recession.
Household spending slipped 0.4 per cent as consumers tightened their belts following a wave of job cuts by Japanese companies.
The figures were even worse than the average analyst forecast for an annualised contraction of 11.6 per cent.
The pace of the contraction also picked up sharply compared with the three months to September, when the economy shrank 0.6 per cent from the previous quarter.
Japan’s economics minister warned shortly after the data was released that Japan faces the worst economic crisis since World War II, and that it would not be able to bounce back until the global economic climate improves.
"This is the worst ever crisis in the post-war era. There is no doubt about it," Economic and Fiscal Policy Minister Kaoru Yosano said.
"The Japanese economy, whose growth is heavily dependent on exports of automobiles, machinery, and IT equipment, was literally battered" by the global downturn, he told a news conference.
"Japan alone won't be able to recover. The economy has no border. It is our responsibility to rebuild the domestic economy for other countries."
The government will consider fresh stimulus measures to revive the economy, Yosano said.
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