Japan’s GDP crumbles under crunch pressure

Japan ’s economy minister characterised the Asian nation’s fourth-quarter GDP decline as evidence that the country was facing its “biggest economic crisis since the war”, the Financial Times reported today.

Kaoru Yosano, minister for economic and fiscal policy, called for an “exercise of minds” to tackle the crisis, as it emerged that dwindling foreign demand and lacklustre domestic consumption had led to a quarter-on-quarter GDP drop of 3.3 per cent.

The downturn, equated to a 12.7-per-cent yearly drop, trumps Japan’s 1974 oil-related fiscal slowdown.

Some of Japan’s largest manufacturers have closed production lines in recent months, leaving thousands out of work and leading to shrinking private consumption levels, although the lion’s share of the dip is attributed to plunging net exports.