Japan economy battered by the economic slowdown
The Japanese economy registered a contraction of 12.7% in the last quarter of the year, compared with the same period, the largest drop since the oil crisis of 1974, with companies exporting country to be heavily penalized by the global crisis. The Gross Domestic Product fell for the third consecutive quarter in the three months ended December 31. This fall in GDP was worse than expected by economists, indicating a contraction of 11.6%. Exports sank 13.9%, compared to third quarter, with demand for products such as cars or televisions in free fall due to global economic slowdown. This contraction occurs when the G7 reiterated that the economic slowdown will remain throughout 2009. Some major Japanese companies such as Toyota, Sony and Hitachi, are firing hundreds of workers to reduce costs as they face the fall in revenue. In the third quarter, GDP fell 3.3%, said the same report. The American economy shrink by 1% over the same period, while the euro countries saw GDP fall 1.5%, the fastest pace in at least 13 years. The countries of the G7, who were meeting this weekend in Rome, pointed to an economic slowdown "severe" over 2009. A deep recession is spreading everywhere.AC
