Japan's economy shrank slightly less than initially thought in the fourth
quarter of 2008, but still logged its worst performance in almost 35 years
as exports collapsed, data showed today.


Asia's biggest economy contracted by 3.2 per cent in the three months to
December from the previous quarter -- 12.1 per cent on an annualised basis,
the government said.

The figure was better than a first estimate of a 3.3 per cent contraction,
for an annualised drop of 12.7 per cent.

But even after the revision, it was the worst quarter since early 1974 in
the wake of the first oil shock, a government official said.

The economy contracted for a third straight quarter as the global downturn
choked demand for the country's cars and high-tech goods.

Japan was once seen as relatively immune to the financial crisis, but its
economy is now shrinking much faster than many other major economies
including the United States, the epicentre of the credit crunch.

Recent data point to another sharp contraction in the first quarter of 2009.
Japan logged a record current account deficit in January as exports almost
halved from a year earlier, while factory output has plummeted.

B.Karthick

Research Analyst

www.kences1.blogspot.com

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