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Japan In Recession

Japan has now declared that it is in recession.

Japan, the world’s second-largest economy has confirmed, through its cabinet office, that its economy shrank another 0.1 percent in the third quarter, following a 0.9 percent drop in the second quarter.

The country's gross domestic product -- second to the United States -- has fallen by 0.4 percent this year, pushing Japan into its first recession since 2001.Major indexes around the globe have plummeted over the last two months. The Russian stock market has lost 65.5 percent of its value since the start of the year.

Stocks in Japan and the United States have been equally hard hit, falling 42 percent and 33 percent, respectively.In Europe, the pain has been particularly acute. The European Union on Friday officially declared that the 15-nation group had entered into a recession, with its gross domestic product declining 0.2 percent for the second straight quarter.

Japanese Prime Minister Taro Aso was among the Group of 20 world leaders who met in Washington over the weekend, unveiling a set of sweeping plans aimed at tackling the ever-expanding economic crisis, which has roiled financial markets worldwide.

The G-20 members at the historic two-day meeting managed to find some common ground on the causes of the crisis and areas that need to be fixed.The plans include interest rate cuts by central banks around the globe or potential economic stimulus packages, and boosting developing countries struggling under the weight of the crisis.

Source : CNN.com

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