The Japanese economy has entered a state of recession. The Cabinet Office on Nov. 12 announced that Japan's gross domestic product in real terms in the July-September period declined 0.9 percent from the April-June period for an annualized decline of 3.5 percent.
This represents the first GDP decline in three quarters (nine months). Exports and production are falling because of a slowdown in the global economy attributed to the European sovereign debt crisis. It is important that the government sense the crisis and quickly take necessary measures to shore up the economy and prevent a deep recession.
Exports in the July-September period dropped as much as 5 percent from the April-June period as exports not only to Europe but also to Asian countries suffered a setback.