Japan has officially entered the recession after the Japanese Cabinet’s office confirmed today that the country’s economy has contracted for its second successive quarters.
Japan’s gross domestic product, GDP, has fallen by a further 0.4 percent, slipping the country into the inevitable predicament, as many analysts have predicted before. In a way, the recession announcement is not that all surprising.
The last recession hit the country in 2001. The current recession is expected to last for four miserable quarters.
Japan is the world’s second largest economy after the United States, with the country highly dependent on export industry and business investment. As the export business worldwide is suffering from the financial downfall, major companies are hit hard and instead of recording profits, they are seeing red instead. A number of small and medium companies have begun their going-out-of-business sale. Street business owners are seen on the road with microphones announcing their garage sale.
Worse is yet to be expected as major corporations are expected to announce layoffs and business closure soon.
Japan has been enjoying its longest run of economic expansion until the global credit crunch and subprime mortgage crisis in the US halted its impressive surge and started to sink its export industry.