Japan Slips into Recession, Germany Overtakes as Third-Largest Economy #shorts

Japan Slips into Recession, Germany Overtakes as Third-Largest Economy #shorts

Japan slips into recession Germany overtakes as third largest economy Japan unexpectedly slipped into recession at the end of last year losing its position as the world’s third largest economy to Germany weak demand in China sluggish consumption and production hals at a unit of Toyota Motor Corp indicate a challenging path to economic recovery

Analysts doubt the bank of Japan’s forecast of rising wages to support consumption and inflation two consecutive quarters of GDP contraction rais concerns about the central bank’s ability to justify a rate hike despite optimism about wage growth consumption remains lackluster due to Rising prices the in steady after the data release

While yields on Japanese government bonds fell delaying expectations of a boj policy shift Japan’s nominal GDP fell below Germany ranking it as the fourth largest economy weakness in consumption and capital expenditure persist with delays in actual investment due to Rising costs and labor shortages the boj’s exit from accommodative policy

Is expected to be gradual given lingering risks and the pors in US Federal Reserve rate hikes while some anticipate an early exit from Ultra loose policy others project April as the likely time for the boj to abandon negative rates