Japan's economy has suffered its worst quarterly performance since records began more than five decades ago as it continues to struggle with the economic crisis. The world's second largest economy experienced a quarterly 4 per cent shrink in its gross domestic product (GDP) reflecting the continued impact of the recession on the export-dependent nation.
Hit hard by a global plunge in demand for cars and technology, Japan's economy shrank 15.2 per cent in the first quarter compared to last year, according to Cabinet Office figures. The contraction eclipses that of other industrialised nations: the nation's GDP slide was more than double the 1.6 per cent recorded in the US and significantly higher than Europe's record 2.5 per cent.
A weakening in domestic demand has been the biggest contributor to Japan's decline, with consumer spending dropping 1.1 per cent and business investment plunging a record 10.4 per cent during the same period. |