(TOKYO) — New economic data out Monday suggests Japan may be inching toward a recession yet again.
The government reported that the country’s economy shrank 0.9 percent between July and September, while its gross domestic product fell at an annualized rate of 3.5 percent.
It’s a sharp reversal from the first half of the year, when Japan outperformed other G-7 countries. Since then, the world’s third largest economy’s been plagued by a decline in exports, stemming from Europe’s financial woes.
Japan’s territorial spat with China has also hurt trade relations with its largest trading partner, forcing Japanese companies to reconsider its economic outlook.
Copyright 2012 ABC News Radio
Ahiza Garcia, CNN
Aaron Smith, CNN Newswire
Jethro Mullen Ivana Kottasova and Patrick Gillespie, CNN