Japan’s government faced pressure for another stimulus package yesterday after plunging exports pushed the country, the world’s second-largest economy, into its worst slump in 35 years.
Economists see little prospect for a quick rebound after a quarter on quarter fall of 3.3 per cent in gross domestic product in the last three months of 2008.
The decline was worse than economists had forecast and equivalent to an annualised 12.7 per cent – the steepest drop since 1974, when import-dependent Japan suffered because of soaring oil prices.
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