Japan enters recession

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Japanese economy unexpectedly entered a recession in the third quarter. Therefore, Prime Minister Shinzō Abe is likely to abandon the infamous VAT increase and call new early elections, two years before the end of his mandate.

In the third quarter, Japan’s economy weakened 0.4 percent, after dropping 1.9 percent in the period from April to June. Economists expected a growth of 0.5 percent in the third quarter.
According to the estimations, the third largest economy in the world would have an increase, but consumption and export are currently weak, making the situation which companies with a large inventory of goods are facing difficult.

 

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