Japanese economy slides back into recession

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Japan sunk back into recession for the second time since Shinzo Abe became prime minister three years ago, official figures showed Monday.

Gross domestic product fell at an annualized rate of 0.8 per cent in the third quarter from July to September, following a 1.2-per-cent decline in the previous quarter.

The disappointing results may put pressure on the government and central bank to implement further monetary and fiscal stimulus measures, although economists are predicting GDP to grow in the current quarter, which runs through the end of this year.

The figures are a further sign that Abe’s set of economic policies, dubbed Abenomics, have failed to put the world’s third-largest economy back on a path to sustained growth.

The economy suffered a brief recession last year, amid a controversial sales tax increase in April.

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