Japan Facing Possible Recession

Japan said its economy contracted in the second quarter as falling exports and weak consumer spending sent Asia’s largest economy lunging toward its first recession in six years, Agence France-Presse reports.  Japan’s gross domestic product shrank by 0.6% in the three months to June from the previous quarter.  This marks the first time in a year that the world’s second-biggest economy has contracted.

While Japan’s contraction was partly a hangover from the robust first-quarter growth, the slowing global economy took a heavy toll on exports, tumbling 2.3%.   The economy shrank by 2.4% on an annualized basis, matching market expectations.

Japan is not alone, Canada’s economy shrank in the first quarter and Italy suffered negative growth in the second quarter.