The Japanese economy has slipped into technical recession for the second time in three years amid uncertainty about the state of the global economy.
Japan’s economy contracted in the third quarter of 2015, with gross domestic product declining 0.8 per cent in the three months to the end of September following a revised 0.7 per cent drop in the second quarter, the Cabinet Office reported today.
In the meantime, as the market reflected the nervousness in the wake of the tragic events of the Paris terrorist attacks, the MSCI Asia Pacific Index declined 1.1 per cent to 130.77 in early trading in Hong Kong today while Japan’s Topix index dropped by 0.9 per cent.
After its latest meeting, the central bank of Japan lowered the country’s economic growth forecasts for the year to March 2016 to 1.2 per cent from 1.7 per cent.
The inflation target of 2 per cent was also postponed by the central bank amid low energy costs, weak exports and a slow recovery in consumer spending.
The central bank also decided the new aggressive asset purchase started in October 2014 will remain at its annual pace of 80trn yen (£428bn).