Japan at risk of entering 3rd technical recession

The country has downgraded its economic assessment for a fourth month.

OCBC Treasury Research noted:

Japan has downgraded its economic assessment for a fourth month, citing “weakness recently due to the deceleration of the world economy” and “attention should be paid to employment and income situations in the future, and the adverse effects of deflation on the economy”.

Uncertainties abound as PM Noda is dissolving parliament today for a general election on 16 Dec which polls suggest he will lose. The Japanese economy is at risk of entering its third technical recession defined as two straight quarters of contraction since 2008.

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