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Japanese Economy Slides Back into Recession

Posted November 17, 2014

Under Economic Issues, International Trade Issues

(CBC News)

Japan’s economy unexpectedly slipped back into recession as housing and business investment dropped following a sales tax hike, hobbling its ability to help drive the global recovery.

The world’s third-largest economy contracted at a 1.6% annual pace in the July-September quarter, the government said Monday, confounding expectations that it would rebound after a big drop the quarter before.

The news cast a pall over financial markets: Japan’s share benchmark fell 3%, and many others in Asia also declined. Shares were lower in early trading in Europe and Dow Jones and S&P futures were off 0.5%, suggesting a dismal start for the week on Wall Street. Read more here.