Japanese recession makes German economy world’s third-largest [Video]

Japan unexpectedly slipped into a recession at the end of last year, losing its title as the world’s third-biggest economy to Germany and raising doubts about when the central bank would begin to exit its decade-long ultra-loose monetary policy.

Some analysts are warning of another contraction in the current quarter as weak demand in China, sluggish consumption and production halts at a unit of Toyota Motor Corp all point to a challenging path to an economic recovery.

“What’s particularly striking is the sluggishness in consumption and capital expenditure that are key pillars of domestic demand,” said Yoshiki Shinke, senior executive economist at Dai-ichi Life Research Institute.

JAPAN SCRAPS CONTROVERSIAL FOREIGN WORKER PROGRAM, REPLACING IT WITH NEW SYSTEM

“The economy will continue to lack momentum for the time being with no key drivers of growth.”

Japan’s gross domestic product (GDP) fell an annualised 0.4% in the October-December period after a 3.3% slump in …