by Calculated Risk on 2/16/2009 10:12:00 AM
Monday, February 16, 2009
Japan's Economy Shrinks Sharply
From MarketWatch: Japan's economy shrinks 12.7% annualized
Japan's economy contracted ...12.7% on an annualized basis in the October-to-December period ...From CNBC:
The decline was the biggest since a 13.1% annualized contraction in the January-to-March period in 1974.
"Given a rise in inventory and a decline in final demand, output adjustments will continue in January-March, paving the way for another big contraction in the first quarter," said Tatsushi Shikano, senior economist at Mitsubishi UFJ Securities.The Japanese economy is very dependent on exports, especially to China and the U.S. They are hoping the stimulus packages in China and the U.S. will also provide a boost to their economy.
"As the U.S. stimulus package will have its effect on Japanese exports, Japan's economy may start picking up from April-June onwards, but it will be a very weak recovery amid a lingering recession. The economy can't avoid a second straight year of contraction in the fiscal year starting in April."