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* February 17, 2009
AUSTRALIA'S biggest and most reliable customer, Japan, has plunged into depression, with federal Treasurer Wayne Swan now warning of the worst global downturn "in our lifetimes".
Japan's economy shrank an annualised 12.7 per cent over the December quarter, its worst result since the 1974 oil shock.
Japan is by far Australia's biggest export customer, accounting for one in every five container ships that leave Australia's shores.
The new figures put it among the worst-hit casualties of the global crisis.
The annualised contraction of 12.7 per cent, or 3.3 per cent in quarterly terms, dwarfs those of the United States and Europe and is much worse than anything that happened to Japan during its so-called "lost decade" of recession in the 1990s.
The collapse in growth fits the profile of a depression — a deep recession in which annual GDP falls by 10 per cent or more.
Australia's other big customer, China, has had its growth rate almost halved from 13 to 6.8 per cent.
Originally posted by nixie_nox
Well in January the japanese bought more cars then Americans did. i know they are slightly recessed but they are still doing better then we are.
So I don't know which report is accurate.
Originally posted by SonOfChaos
If you read what economist say about Japan for the last 20 years is that it is always recessed or hopeless by our standards of measurement. Most of these guys talk about the reason that Japan's economy keeps chugging along so well is that it functions based on saving & exportation rather than consumption. This drastically lowers GDP (saved money is not spent) and...
oh just look up real economist before I catch myself in a liquidity trap of reasoning.
What is particularly remarkable about the debate over Japan is that it is a case where straightforward economic analysis and policy orthodoxy are in direct conflict.