Finance

Finance

Japanâ€™s economic crisis worse than worst

16 February 2009 08:15 (UTC +04:00)

Bakuâ€“ APA-Economics. Japan is facing its biggest economic crisis since World War II, the government warned Monday, after Asia’s biggest economy suffered its worst contraction in almost 35 years in the fourth quarter, AFP reported.
Analysts said things could still get worse as the global economic downturn crushes demand for Japanese cars, electronics and other goods, forcing companies to slash jobs and investment.
The economy contracted at an annualised pace of 12.7 percent in the three months to December -- its worst performance since 1974 when the country was reeling from the oil crisis, official figures showed.
Gross domestic product contracted by 3.3 percent from the previous quarter.
he figures were even more dismal than analysts had expected and much worse than the 0.6 percent contraction seen in the three months to September from the previous quarter.
Exports plunged 13.9 percent from the previous quarter as demand slumped in recession-hit overseas economies.
Business investment in factories and equipment dropped 5.3 percent as companies scrambled to reduce their costs to cope with the recession.
Household spending slipped 0.4 percent as consumers tightened their belts following a wave of layoffs.
Japanese companies including Sony, Nissan Motor and Hitachi have announced massive job cuts in response to the country’s deepening economic woes.
Before the global financial crisis erupted, Japan had been enjoying its longest economic recovery in post-war times.