National economy has shrunk for second quarter in a row, reveals Japanese government

Japan has become the latest major economy to slide into recession, its government said yesterday.

The country, which accounts for nearly 7% of global output, said its economy had shrunk for two consecutive quarters – the official definition of recession.

It contracted by 0.1% in the three months to the end of September and by 0.9% in the previous quarter, between April and June.

Finance minister Kaoru Yosano said: “The downtrend in the economy will continue for the time being as global growth slows down.

“We need to bear in mind that economic conditions could worsen further as the US and European financial crisis deepens, worries of economic downturn heighten and stock and foreign exchange markets make big swings.”

The news comes just days after confirmation that the eurozone is in recession.