Japan's economy shrinks 3.5% as global slowdown bites

Japan's economy has shrunk by 3.5% on an annualised basis, following a sharp decline in exports to key markets like China.

The decline - covering the third quarter of this year compared to the same period last year - is the steepest since the earthquake struck the country in Q1 2011. Prime Minister Yoshihiko Noda described the gross domestic product figures as "severe", while Seiji Maehara, economy minister, said Japan had possibly entered a "recessionary phase", according to reports. The GDP figure means the world's third largest economy is heading for another recession. The data has also kept government pressure on the Bank of Japan to boost monetary stimulus. It eased policy in October for the secon...