Japan unexpectedly slips into a recession
Japan has unexpectedly slipped into a recession as its economy contracted for two consecutive quarters.
In the final three months of 2023, Japan’s gross domestic product (GDP) unexpectedly shrank by 0.4% compared to the same period a year ago, following a 3.3% contraction in the previous quarter.
These figures, released by Japan’s Cabinet Office, also reveal that Japan has yielded its position as the world’s third-largest economy to Germany.
Economists had anticipated a growth of over 1% in Japan’s GDP for the fourth quarter of the preceding year.
These initial figures mark the first assessment of Japan’s economic performance for the period and are subject to potential revisions.
A downturn for two consecutive quarters meets the criteria for a technical recession.
In October, the International Monetary Fund (IMF) predicted that Germany would surpass Japan as the third-largest economy when measured in US dollars.
The IMF will only confirm a change in rankings once both countries have finalized their economic growth figures. The IMF has been comparing economies since 1980.