Japanese economy shrinks

on 12/11/2012 08:47:30

Japan's economy contracted in July-September, foiling hopes for a rebound and signalling to many economists it may already be in recession.

The minus 3.5% annual growth rate for the quarter was in line with gloomy forecasts for the world's third-largest economy, which has suffered as a territorial dispute with China hammered exports already weakened by feeble global demand.

Based on the most recent data, economists are forecasting a further decline in October to December, which would officially put Japan in recession, marked by two consecutive quarterly contractions.