Japan’s Economy Faces Recession Pressure

Japan's Economy Enters Technical Recession, Putting Pressure on BOJ's Tightening Plans

Tokyo, Japan – The Japanese economy took an unexpected downturn, shrinking in the fourth quarter of 2023 and sliding into a technical recession. This development adds complexity to the Bank of Japan's (BOJ) ongoing dilemma regarding the timing for policy tightening. Amidst inflationary pressures and a depreciating yen, private spending weakened significantly, countering gains from a modest increase in export demand.