Japan has entered its fifth recession in 15 years just days before the December 16 election, which is expected to sweep the Democratic Party of Japan and Prime Minister Yoshihiko Noda from power.
Shinzo Abe, leader of the opposition Liberal Democratic party, has attacked the DPJ and the central bank for failing to stir demand in an economy that has shrunk in three of the past four years, while calling for further fiscal stimulus and “unlimited” monetary easing.
Government data yesterday showed that Japan’s gross domestic product shrank an annualised 3.5 per cent in the three months to September, as the country joined Italy and Spain in recession. The government also revised down its GDP estimate for the quarter, saying the economy shrank an annualised 0.1 per cent.