The report showed both households and businesses cut spending for a third straight quarter as Japan’s economy slipped to fourth-largest in the world in dollar terms last year. Germany now has the world’s third-largest economy.
Japan’s economy unexpectedly slipped into recession after shrinking for a second quarter due to anaemic domestic demand, prompting some central bank watchers to push back bets on when the nation’s negative interest rate policy will end.
Gross domestic product contracted at an annualized pace of 0.4% in the final three months of last year, following a revised 3.3% retreat in the previous quarter, the Cabinet Office reported Thursday.
