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
Accused killer Vance Boelter hints at motive in Post jailhouse interview

Vance Boelter, accused of murder, suggests motive during jail interview with the Post

The man charged with the politically motivated murder of a Minnesota lawmaker…
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…
'Bachelor in Paradise' bartender Wells Adams reveals contestant drink requests

‘Bachelor in Paradise’: Bartender Wells Adams Shares Favorite Drinks of Contestants

They’re old-fashioned. “Bachelor in Paradise” bartender Wells Adams revealed the drink requests…
Gervonta Davis arrested in Miami on domestic violence charge

Gervonta Davis faces arrest in Miami for domestic violence allegations

Police say the charge was connected to an incident that occurred last…
Iliamna Volcano in Alaska 'rumbling' after being inactive for a century

Alaska’s Iliamna Volcano Shows Signs of Activity After 100 Years of Dormancy

(NewsNation) — A volcano in Alaska that last erupted in 1867 is…
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…
Parents face possible arrest, steep fines in military town's tough new approach to combat youth crime

Military Town Implements Strict Measures to Tackle Youth Crime, Including Potential Arrests and Fines for Parents

To curb rising youth violence, city leaders in Fayetteville, North Carolina, are…
‘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…
Former Illinois Secretary of State Jesse White hosts 11th annual 'Off to College Trunk Party' for Chicago high school graduates

Ex-Illinois Secretary of State Jesse White Celebrates 11th ‘Off to College Trunk Party’ for Chicago Graduates

CHICAGO (WLS) — Former Illinois Secretary of State Jesse White hosted his…
Nigel Farage on LBC's Nick Ferrari at Breakfast show.

Nigel Farage Argues for Britain to Retain the Elgin Marbles

NIGEL Farage has waded into the Elgin Marbles row saying they “absolutely”…
Appeals court scraps 9/11 plea deal for Khalid Sheikh Mohammed

Appeals Court Overturns 9/11 Plea Deal for Khalid Sheikh Mohammed

The case against the alleged architect of the 9/11 attacks remains unresolved…
Bottom Line: Without Honest Elections, There Can Be No Republic

Essential Truth: A Republic Cannot Exist Without Fair and Transparent Elections

It’s Been a Heck of a Ride In the last several months…