Japan sinks into recession: Stocks tumble 42 percent

Its official Japan is now in recession, according to government figures the Japanese economy contracted in the third quarter by 0.4 percent following the second quarter decline.

Japan the world’s second biggest economy declined months after large companies announced warnings regarding their profits falling and their stocks tumbling.

Since the beginning of 2008 Japanese stocks have fallen by 42 percent, with the Yen strengthening and the demand for export goods weakening.

Economists predict that Japans downwards slope into recession will continue as global growth slows, Japan could see its recession as bad as the Japanese recession from 1997 to 1998 according to analylists.

Source: Telegraph