Japan recession

Japan’s economy slips into technical recession

Japan’s economy slipped into a technical recession, after the economy unexpectedly contracted again in the October-December 2023period, government data showed Thursday 15th February 2024.

High inflation affected domestic demand and private consumption in what’s now the world’s fourth-largest economy.

Provisional gross domestic product contracted 0.4% in the fourth quarter compared with a year ago, after a revised 3.3% slump in the July-September period. This was below the estimate of a 1.4% growth.

The Japanese economy also contracted 0.1% in the fourth quarter from the previous quarter, after shrinking a revised 0.8% in the Q3. This was also weaker than the expected 0.3% expansion.

Nikkei one year chart to 15th February 2024

Nikkei one year chart to 15th February 2024

Japan has lost its spot as the world’s third-largest economy to Germany, as the country unexpectedly slipped into recession.

Technical recession

A technical recession is a term used to describe two consecutive quarters of decline in output. It is measured by the Gross Domestic Product (GDP), which is the overall output of goods and services in a country.

A technical recession is usually caused by slowing growth or an isolated event rather than a major underlying cause.

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