Japan's economy contracted 0.9 percent in the July-September period compared with the previous three months, according to official data showed for the first time Japan entered negative territory in 2012.
The data highlighted concerns over the new start of the post-disaster recovery back to the world's third-largest economy - which is affected by the global economic downturn and the deterioration of diplomatic relations between Tokyo-Beijing that affect the balance of exports.
The figures from the Cabinet Office on Monday, mainly related to market expectations, came after Japan's economy remains in positive territory for the last two quarters, after weakening 0.3 percent in the final three months of 2011.
Japan's economy, which was hit by a natural disaster and tsunami last year, is also suffering from the economic slowdown in Europe, the main export markets as well as the strengthening yen, which reached a high level of around 75 to the dollar in the past year and remains strong today.
A stronger yen makes exporting products less competitive abroad, thus weakening the value of overseas earnings.
The government has taken a series of serious steps to boost growth, including incentives for buyers of fuel-efficient vehicles and also steps to rebuild the northern region hit by the tsunami.
However, the car subsidies ended, the demand for Japanese cars weakened in China, the world's largest vehicle market, amid the disharmony between the Tokyo-Beijing on the issue of South China Sea claims.
Source: http://www.antaranews.com/berita/343083/
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