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
‘Ruthless’ Actor Derek Dixon Speaks Out on Sexual Harassment Lawsuit Against Tyler Perry: “I Couldn’t Stay Silent Anymore”

Actor Derek Dixon Breaks Silence on Sexual Harassment Lawsuit Against Tyler Perry: “I Had to Speak Up”

Derek Dixon, most recognized for portraying Dale in Tyler Perry’s shows Ruthless…
Ayatollah Ali Khamenei at a mourning ceremony.

Iran’s Elderly and Fearful Ayatollah’s Grip Weakens – Former Ambassador Predicts Imminent Collapse

IRAN’S merciless regime is “fully on its heels” – leaving the Ayatollah’s…
Jonestown survivors weigh in on site becoming tourist attraction

Jonestown survivors comment on plans to turn site into tourist destination

Jonestown remains etched in the American conscience as one of the darkest…
A man placing a USB drive into a bicycle's seat post.

Russian Spy Suspected of Hiding USB Drive in Bike Seat to Leak Grant Shapps’s Confidential Information

This is the incident where a man, suspected of being a Russian…
Lawmakers visit 'Alligator Alcatraz' after being blocked

Legislators Tour ‘Alligator Alcatraz’ Following Previous Denial

OCHOPEE, Fla. (AP) — Democratic legislators have criticized Florida’s newly established Everglades…
Boeing settles with a man whose family died in a 2019 crash in Ethiopia

Boeing Reaches Settlement with Man After 2019 Ethiopian Crash that Killed His Family

The tragic 2019 crash claimed the lives of all 157 passengers, including…
Trump's Middle East tour begins with Syria looming as strategic opportunity

Activist Supports Trump’s Efforts for Israel-Syria Peace Agreement with Visit to Jerusalem

In an unprecedented visit to Israel’s parliament this week, Shadi Martini, a…
‘Peacemaker’ Trump can end Africa’s biggest war, former White House advisor says

Former White House Advisor Claims Trump Can Resolve Africa’s Largest Conflict

Following the recent success in resolving a conflict within Africa, President Donald…
FX's "Alien: Earth" expands its universe with a companion podcast and immersive experiences

FX’s “Alien: Earth” Expands Universe with Companion Podcast and Immersive Experiences

LOS ANGELES — FX is offering its fans a closer look into…

Texas Flooding: Records Reveal FEMA Removed Numerous Camp Mystic Buildings From Flood Zone Designation Prior to Expansion

KERR COUNTY, Texas — According to an investigation by The Associated Press,…
Here’s how much money New Yorkers need to retire comfortably: new study

New Study Reveals the Retirement Savings New Yorkers Need for Comfort

Research indicates that retirees in New York require an average of $50,997…
Tucker Carlson Epstein Israel: A Call for Accountability

Tucker Carlson on Epstein and Israel: Demanding Transparency and Responsibility

Tucker Carlson delivered a blistering critique at TPUSA, accusing Jeffrey Epstein of…