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Japan's economy in quarterly dive | Japan's economy in quarterly dive |
(about 3 hours later) | |
Japan's economy contracted by 3.3% in the last quarter of last year - its worst showing since the oil crisis of the 1970s, official figures show. | Japan's economy contracted by 3.3% in the last quarter of last year - its worst showing since the oil crisis of the 1970s, official figures show. |
It comes as the country faces its worst economic crisis since the end of World War II, said Economic and Fiscal Policy Minister Kaoru Yosano. | |
The slowdown in the world's second-biggest economy is steeper than in the US or Europe. | |
Japan has been hit particularly hard by falling global demand for its products. | |
Exports, particularly of electronics and cars, have slumped and production has been slashed. | |
Consumers have cut back too, alarmed by rising unemployment. | |
Now the government has confirmed that in October to December last year Japan's gross domestic product fell by 3.3%. | Now the government has confirmed that in October to December last year Japan's gross domestic product fell by 3.3%. |
It is the equivalent of an annual decline of 12.7% - the worst figures since the 1970s. | It is the equivalent of an annual decline of 12.7% - the worst figures since the 1970s. |
Worst since war | |
"This is the worst economic crisis in the post-war era. There is no doubt about it," Mr Yosano said at a news conference. | |
"The Japanese economy, whose growth is heavily dependent on exports of automobiles, machinery, and IT equipment, was literally battered" by the global downturn, he said. | |
He said the government would consider new stimulus measures to aid the economy. | |
"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," he added. | |
Prime Minister Taro Aso is hampered in his response by a divided parliament and a fractious ruling party. | Prime Minister Taro Aso is hampered in his response by a divided parliament and a fractious ruling party. |
There were reports over the weekend that he is considering another stimulus package of government spending worth 20 trillion yen ($218bn; £152bn). | There were reports over the weekend that he is considering another stimulus package of government spending worth 20 trillion yen ($218bn; £152bn). |
But the latest opinion poll has showed fewer than 10% of people support the prime minister, who must call a general election by September. | But the latest opinion poll has showed fewer than 10% of people support the prime minister, who must call a general election by September. |