The economy shrank for a second quarter in a row in the quarter ended in September, revised government data said Monday, indicating that a mild recession has begun amid sluggish global demand.
The Cabinet Office said gross domestic product fell at an annual pace of 3.5 percent in inflation-adjusted terms, unchanged from preliminary data, but it revised the GDP figures for the preceding quarter to a small contraction, matching the textbook definition of a recession.
With the data presenting a clearer view that the economy is contracting, political pressure is likely to rise on the government to craft fresh stimulus measures after this Sunday's general election and for the Bank of Japan to further loosen monetary policy.