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Thursday, May 19, 2011

Japan back in recession

The recent earthquake and tsunami in March has sent Japan back in recession. The below is a news I stumble in during my online search for Tile Floor. It was expected to happened after the turmoil, I pray for Japan in their speeding recovery.

Japan's economy, the world's third largest, has slid back into recession after the devastation caused by the earthquake and tsunami in March.

Gross domestic product shrank 0.9% in the first three months of the year, the Cabinet office said, giving an annualised rate of contraction of 3.7%.

Analysts say consumption and exports were worst hit.

Japan's economy has now contracted for two quarters in a row, the generally accepted definition of a recession.

Japan sank into a recession during the global financial crisis, but had emerged from it in 2009.

The contraction in the first three months of this year was bigger than expected, with most analysts expecting the annualised rate would show a contraction of about 2%.

"Japan's economy is expected to remain weak for the time being," said Japanese Economics Minister Kaoru Yosano on Thursday.

However, Mr Yosano said that supply constraints were easing and reconstruction demand was likely to spur growth.

"The economy has the strength to bounce back," Mr Yosano said.

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