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Japan Economy Shrinks by Most in 35 Years

4th-quarter contraction of 3.3% was 3 times worse than US

By Jason Farago,  Newser Staff

Posted Feb 16, 2009 6:38 AM CST

(Newser) – Japan's economy contracted by a shocking 3.3% in the fourth quarter of 2008, three times worse than the US and the worst performance in 35 years. The Financial Times reports that a sharp drop in exports contributed to the slump—the third straight quarter of negative growth. The figures released today put pressure on the government and the Bank of Japan, which has already cut interest rates to just 0.1%.

Construction site for new tower is seen in Tokyo Monday, Feb. 16, 2009. Japan's economy contracted in the fourth quarter at the fastest pace in 35 years from a collapse in global demand.
Construction site for new tower is seen in Tokyo Monday, Feb. 16, 2009. Japan's economy contracted in the fourth quarter at the fastest pace in 35 years from a collapse in global demand.   (AP Photo/Katsumi Kasahara)
The Japanese economy shrank by 3.3% in the fourth quarter of 2008, the worst result in 35 years.
The Japanese economy shrank by 3.3% in the fourth quarter of 2008, the worst result in 35 years.   (©RichieC)
Japan's Finance Minister Shoichi Nakagawa and Bank of Japan Governor Masaaki Shirakawa meet journalists at the end of the G7 summit in Rome, Friday, Feb. 13, 2009.
Japan's Finance Minister Shoichi Nakagawa and Bank of Japan Governor Masaaki Shirakawa meet journalists at the end of the G7 summit in Rome, Friday, Feb. 13, 2009.   (AP Photo / Gregorio Borgia)
Japan's Finance Minister Shoichi Nakagawa talks to journalists outside a Rome hotel on the first day of the G7 finance ministers and central bank governors summit, in Rome, Friday, Feb. 13, 2009.
Japan's Finance Minister Shoichi Nakagawa talks to journalists outside a Rome hotel on the first day of the G7 finance ministers and central bank governors summit, in Rome, Friday, Feb. 13, 2009.   (AP Photo/Gregorio Borgia)
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COMMENTS
Showing 1 of 1 comment
Shannonals
Feb 17, 2009 2:48 AM CST
Looking at the yen rate now, I would love to be stationed over there

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