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
'High Potential' star Javicia Leslie teases a villain twist you won't see coming: "You'll never guess who it was." 

‘High Potential’ Star Javicia Leslie Hints at Unexpected Villain Plot Twist: “You’ll Be Surprised Who It Is.”

LOS ANGELES — The filming of Season 2 of “High Potential” on…
Father and son drown in Lake Michigan during weekend family boating trip tragedy

Tragic Accident: Father and Son Drown in Lake Michigan During Family Boating Trip

A father and his son drowned in Lake Michigan over the weekend…
WATCH: ICE agents fight off masked mob outside blue city immigration court

VIDEO: ICE Agents Defend Themselves Against Masked Group Near Immigration Court in a Major City

A conflict took place outside of the San Francisco Immigration Court this…
Fifth paralyzed patient implanted with Musk-backed Neuralink chip

Neuralink Installs Brain Chip in Fifth Paralyzed Patient

A fifth paralyzed patient has been implanted with a Neuralink chip backed…
Man in suit reviewing documents.

Evidence of Torture Discovered on Fired Putin Minister’s Body Before Alleged Suicide

The Kremlin has been charged with concealing the demise of a dismissed…
Immigration operation at California cannabis farms leads to clash between federal agents and protesters

Federal Immigration Raid on California Cannabis Farms Sparks Confrontation with Protesters

On Thursday, demonstrators confronted federal officials during an immigration raid at a…
Gavin Newsom's Big Address to the Nation Was a Lie-Filled Disaster

Democrats Criticized for Supporting High-Density Housing Following California Wildfires

For quite some time, California Democrats have pushed for the development of…
A Texas family clung to life on their roof, capturing the terrifying flooding in photos and video

Texas Family Documents Harrowing Flood Experience from Their Rooftop in Photos and Video

Jane Towler found herself awake in a small cabin by the Guadalupe…
Photo of Carolina Wilga at a petrol station.

Backpacker Carolina Winger, 26, Found Alive After Nearly Two Weeks Lost in Australian Wilderness

A GERMAN backpacker missing for nearly two weeks in the remote Australian…
US to revoke visas for some Chinese students

Impending Layoffs Anticipated at the State Department

It wasn’t immediately clear how many people would be dismissed. WASHINGTON D.C.,…
'I couldn't stay silent anymore'

‘I Had to Speak Up’

Actor Derek Dixon from “The Oval” has stepped forward after filing a…
Canadian police official warns 'traditional values' may be sign a person is becoming 'extremist'

Canadian Police Officer Cautions that ‘Traditional Values’ Could Indicate Emerging Extremism

A spokesperson for the Royal Canadian Mounted Police (RCMP) cautioned on Tuesday…