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
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)
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(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%.