Japan economy in biggest dive since 1974
17-02-2009
Japan's economy shrank by 3.3 percent in the fourth quarter of last year -- the biggest three-month drop since 1974. The figures were released as the Economic and Fiscal Policy Minister, Kaoru Yosano, said the country faced its worst economic crisis since the Second World War. The slowdown in the world's second-biggest economy is steeper than in the US or Europe. Japan has been hit very 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. The government confirmed that in October to December last year Japan's gross domestic product fell by 3.3 percent. It is the equivalent of an annual decline of 12 percent - the worst figures since the 1970s. "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. There were reports over the weekend that he is considering another stimulus package of government spending worth 20 trillion yen. But the latest opinion poll has showed fewer than 10 percent of people support the prime minister, who must call a general election by September.
