Japan Slips Back Into Recession As GDP Slows Nearly Twice Expectation

Ouch…

“TOKYO (Reuters) – Japan’s economy shrank in the first quarter at nearly double the pace expected, effectively slipping into recession as the devastating earthquake in March hit business spending and private consumption.Gross domestic product fell 0.9 percent in the first quarter, much more than a median market forecast for a 0.5 percent contraction.

That translates into an annualized decline of 3.7 percent against a forecast of a 2.0 percent fall, Cabinet Office data showed on Thursday.

The second straight quarter of contraction puts Japan effectively into recession with analysts projecting the economy to shrink again in April-June as supply constraints triggered by the March catastrophe continue to weigh on output and exports.”

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