Share this @internewscast.com

Japan has lost its spot as the world’s third-largest economy to Germany, as the Asian giant unexpectedly slipped into recession.

Once the second-largest economy in the world, Japan reported two consecutive quarters of contraction on Thursday — falling 0.4% on an annualized basis in the fourth quarter after a revised 3.3% contraction in the third quarter. Fourth-quarter GDP sharply missed forecasts for 1.4% growth in a Reuters poll of economists.

A recession is broadly defined as two consecutive quarters of contraction.

On a quarter-on-quarter basis, GDP slipped 0.1%, compared with a 0.3% rise expected in the Reuters poll.

For the whole of 2023, Japan’s nominal GDP grew 5.7% over 2023 to come in at 591.48 trillion yen, or $4.2 trillion based on the average exchange rate in 2023. Germany, on the other hand, saw its nominal GDP grow 6.3% to reach 4.12 trillion euros, or $4.46 trillion based on last year’s average exchange rate.

Nominal GDP measures the value of output in current dollars, without adjusting for inflation.

In response to the latest GDP release, the benchmark Nikkei 225 climbed 0.65% and briefly surpassed the 38,000 mark in the morning session, as investors saw the weak economic reading as a sign the Bank of Japan could delay its exit from the country’s long-standing negative interest rate policy.

The yen continued to hover around the 150 mark against the dollar, trading at 150.2 as of 1:55 p.m. Tokyo time (11:55 p.m. Wednesday ET).

“This dire growth picture makes it even more difficult for the BOJ to tighten policy,” Charu Chanana, head of FX strategy at Saxo Markets, said in a note on Thursday.

In an earlier note, Chanana said the GDP contraction for the third quarter “weakens the conviction around whether inflation is really driven by a virtuous cycle of increased real income and spending.”

Share this @internewscast.com
You May Also Like
Simone Biles in Chicago: Olympic gymnast speaks with children in foster care system at Friends of the Children event in West Loop

Simone Biles Inspires Chicago’s Foster Youth: Olympic Legend Engages with Future Stars at Friends of the Children Event

In the Windy City, Olympic champion Simone Biles has become a familiar…
How university indoctrination turned deadly, and why one scholar says it’s only getting worse

Deadly Consequences: Scholar Warns of Escalating University Indoctrination Crisis

The tragic death of conservative activist Charlie Kirk and a violent school…
Trump, Putin plan Hungary meeting on Ukraine war, Zelenskyy to visit White House Friday

Trump and Putin to Convene in Hungary for Ukraine War Discussions; Zelenskyy Scheduled for White House Visit on Friday

President Donald Trump announced on Thursday that he plans to sit down…
Remains of last female Hamas hostage and IDF soldier handed over to Israel

Israel Receives Remains of Final Female Hamas Hostage and IDF Soldier

Amb. Waltz: No one will be left behind in Gaza U.S. Ambassador…
Young Republicans' Leaked Chats Show How Personal Feuds Are Increasingly Being Weaponized

Leaked Chats Expose Rising Trend of Personal Feuds Among Young Republicans

If you’ve only skimmed the recent headlines, you might assume that the…
Illinois State University teacher's assistant flips Turning Point USA table, tears down flyers: 'Jesus did it'

Illinois State University TA Sparks Controversy by Dismantling Turning Point USA Display: ‘Inspired by Jesus

An Illinois State University teaching assistant found himself in legal trouble after…
McDonald's worker shoots customer in neck during 'McMess' altercation, Florida sheriff says

Florida McDonald’s Incident: Employee Allegedly Shoots Customer Amid Dispute, Reports Sheriff

A recent incident at a McDonald’s in Polk County, Florida, took a…
Fox News True Crime Newsletter: Alex Murdaugh's money man, Charles Manson's cult, 'Smiley Face' killer theory

The Untold Story of Alex Murdaugh: Greed and Corruption Topple a Lowcountry Legal Dynasty

The dramatic saga of Alex Murdaugh, a once-respected legal figure from South…
UVU professor and former FBI agent warns of new pattern of political violence after Charlie Kirk assassination

Left-Wing Academics Intensify Critique of Charlie Kirk’s Legacy Following His Assassination

Following the assassination of Charlie Kirk at Utah Valley University in Orem…
Rapper D4vd claimed he 'trained' Celeste Hernandez -- who joked about 'raping kids' in resurfaced Twitch video: 'Delete everything'

Controversial Twitch Past: D4vd’s Connection to Celeste Hernandez’s Shocking Comments Revealed

Recent attention has turned towards rapper D4vd following the discovery of a…
Trump immigration crackdown may eliminate 15M workers by 2035: Study

Study Projects Potential Loss of 15 Million Workers by 2035 Under Trump Immigration Policies

According to a newly released study, President Trump’s immigration policies are projected…
'No Kings' protest in St. Augustine

St. Augustine’s ‘No Kings’ Protest Draws Attention: Citizens Rally for Equality and Justice

ST. AUGUSTINE, Fla. — Protesters gathered in St. Augustine on Saturday as…