TOKYO: In real terms, adjusted for deflation, Japan’s gross domestic product fell 3.3 per cent on the previous quarter, or 12.7 per cent annualized.
The contraction is Japan’s sharpest in almost 35 years, since the first “oil shock” of 1973/74. By at least one definition - a deep recession in which annual GDP falls by 10 per cent or more - Japan is headed into a depression.
Economy Minister Kaoru Yosano said today the Government would soon produce another economic stimulus programme, the third since September. It is imperative for the improvemnet of Japanese econmy that the global economy takes a turnaround besides a new stimulus package of $327 billion was soon expected to be announced.
By either measure, the Japanese economy is headed for its longest and probably deepest post-war period of recession.
Japan’s auto manufacturing companies and electronic products have recorded huge drop in their sales, which has not only led to the massive layoff, but has eroded investment also.
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