Japan's economy drops 3.7 percent

Japan's economy drops 3.7 percent

2011-05-19 19:08:51 GMT+7 (ICT)

TOKYO (BNO NEWS) -- Japan's economy during the first quarter of the year dropped 3.7 percent at an annual rate, as the catastrophic March 11 earthquake has caused significant decrease in company and family spending, as well as business investment, the country's Cabinet Office said Thursday.

As the world's third most powerful economy, Japan's first quarter gross domestic product (GDP) dropped 0.9 percent compared to the previous quarter, causing the 3.7 percent decrease, which is much worse than previously forecast (2.3 percent in a Kyodo News survey).

It is also the second consecutive quarter in which the country posts negative growth, which have some economists considering that Japan has now entered recession.

Representing 60 percent of Japanese economy, private consumption rate declined 0.6 percent, while trade surplus fell decreased by 34.3. percent in March, compared to the previous year.

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