Japan's (3rd largest economy in the world) economy shrank for the second consecutive quarter that put them in recession surprised the world. Gross domestic product (GDP) went down at an annualised 1.6% from July to September, compared with forecasts of a 2.1% rise. It followed a revised 7.3% contraction in the second quarter, this is the biggest fall since the March 2011 earthquake and tsunami.
Japan's Prime Minister Shinzo Abe will be calling a snap election to obtain a mandate to delay sales tax rise to 10%, which is scheduled for 2015.
The economy shrank 0.4% in the third quarter from the quarter previous. The data showed that growth in private consumption, which accounts for about 60% of the economy, was much weaker than expected.
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