The Japanese economy has recorded another dreadful performance, plunging four percent in the first quarter in 2009, the worst results in its history.
Some observers have forecast a modest improvement in the coming months, but the figures show exports continued to stall, and companies are still cutting investment. Prime Minister Taro Aso said: “I believe that a worsening of conditions in the corporate sector is starting to affect households, and therefore Japan’s economic situation is becoming even more severe.” Any recovery is likely to be fragile at best, with thousands of jobs lost and domestic spending tailing off. Japan has been hit by its heavy dependence on exports. The global slump has slashed demand for cars and hi-tech goods. However, economists believe the government’s stimulus package may be working and said Japan will just have to weather the storm.