The country with the second largest economy in the world is reportedly now in a recession. As reported by the Associated Press (AP), Japan has entered into a recession for the first time in approximately eight years.
Wired PR News.com –Dramatic decreases in consumer spending in various industries have significantly hurt Japanese companies and their stock markets. Analysts predict that the worst has yet to be seen due to the global crisis that has impacted the buying power for purchasers around the world of electronics and automobiles produced in Japan. Toyota Motor Corporation is an example listed in the AP report of a Japanese company whose cars are normally sold in high volumes in countries like the United States. However, amidst the financial crisis, the company has seen a decline in profits by nearly two-thirds in comparison to last year.
Quoted in the report of senior economist of Tokyo based JP Morgan Securities, We are now looking for a severe recession, similar to that during Japan’s own financial market crisis in 1997 to 1998, and to the current US recession, in terms of depth of real GDP contraction.”
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