Japan slips into recession before election

7 years ago by in Featured, Japan

Japan has entered its fifth recession in the last 15 years just before the national election scheduled for December 16, according to the Financial Times. The election’s result is expected to end the mandates of the Democratic Party of Japan and prime minister Yoshihiko Noda.

Japan’s gross domestic product diminished with 3.5 percent in the three months through September, according to the Japanese government data.

But even with fiscal help, Japan’s economy might not go too well due to the external demand, limited wage rises and not such an attractive labor market, according to the cited source.

Japan is facing difficult times after the global crisis affected both its economy and those of neighboring countries, like China, which saw its exports going down in November. Japan is also struggling to recover after the earthquake and tsunami that destroyed its northeast coast last year.