Japan In Recession! Country Loses Spot As Third-Largest Economy | Details

japan in recession! country loses spot as third-largest economy | details

Japan economy news: Japan’s economy, until recently the third-largest in the world, unexpectedly plunged into a recession at the end of 2023, Reuters reported. The development has created uncertainty around the Bank of Japan, the country’s central bank, exiting its decade-long ultra-loose monetary policy.

Japan’s spot as the third-largest economy in the world now belongs to Germany.

With the sluggish demand in China, weak domestic consumption in Japan, and production breaks at one of Toyota Motor Corp’s units, some analysts are warning of another contraction in the current quarter. The path to an economic recovery already looks challenging.

“The economy will continue to lack momentum for the time being with no key drivers of growth,” Yoshiki Shinke, senior executive economist at Dai-ichi Life Research Institute, told Reuters.