TOKYO - Japan's economy shrank in the first quarter, veering back into recession as a factory production and consumption as a result of 11 March earthquake and tsunami withered.
Real gross domestic product - a measure of the value of which all were and services domestically produced - at an annualized rate of 3.7 per cent in the period January-March nominations, said the Cabinet Office Thursday.
The result marks the second quarter, which has lost the world no. 3 steam and environmental impact of a annualisierte 2.3 percent fall forecast in a survey Kyodo News Agency.
Although there no generally accepted definition of a recession, many economists define it as two consecutive quarters GDP contraction. Others consider the depth of the economic decline, as well as other measures such as unemployment.
Martin Schulz, senior economist at the Fujitsu Research Institute in Tokyo, said there is "no doubt" the recession has returned. More surprising, the economy is wrinkled, just as quickly, he said.
The latest GDP report contains only 20 days after the disaster, but "The impact is huge," said Schulz, to see, which most had expected economic fallout in the second quarter.
The Nikkei 225 stock average fell 0.4 percent to 9,620.82.
The magnitude 9.0 earthquake and tsunami links more than 24,000 people dead or missing, and entire cities in the most affected areas. Damage is $ 300 billion, so that it estimated the most expensive natural disaster in history.
It damaged factories in the region, caused severe lack of parts and components for manufacturers in Japan, above all automakers. Nuclear power plant crippled caused wide power spread defects that faced with the headache, added to companies and households.
As a result, both the most on record was Japan's factory production and consumer spending in March. South for the first time went exports in March in 16 months. Company reports lower earnings and reduced prospects for the rest of the fiscal year.
Recent events have deeply unsettled households, which probably remain for the next few months are careful, Schulz said.
"The nuclear disaster showed how much is actually wrong in Japan," he said. "And find many things that seemed so stable and secure as power... not sure at all."
Toyota Motor Corp., Japan's largest automaker, said last week that its first-quarter profit deficiency fell more than 75 percent due to the parts after the tsunami. As the may cost the crisis the company production of 550,000 vehicles in Japan and a further 350,000 overseas.
Toyota is expected to lose its place as the world's best-selling automaker General Motors co. this year.
Even before the disaster, the Japanese economy was shaky.
A historical shift overtook China as the world no. 2 in the last year. Japan to fight, a whole range of problems including deflation, a rapidly aging and shrinking population and a ballooning national debt to meet. Continued lackluster demand at home was increasingly on exports for growth and offset based Japanese companies.
Solid after four quarters growth, Japan of GDP enables in the last three months of 2010 as a result of weak exports and consumer demand negatively. The downturn was expected to be temporary.
Japan now consecutive quarters instead recorded contraction for the first time since the global financial crisis. GDP fell for four straight quarters from April 2008.
Japan's economy and fiscal policy Minister Kaoru Yosano described the collapse as mild as the previous slide, when global demand "immediately vaporized."
"The Japanese economy ability too much is enough," Yosano said according to Kyodo News Agency.
Goldman Sachs said the economy is probably below in the second quarter. It expects GDP to bolsters to start demand in both the private and public sectors grow again in the third quarter as reconstruction.
"We assume it, changes the production and exports to mild growth through the supply chain restoration, although power supply is an uncertain factor," Japan's Chief Economist Naohiko Baba said in a report to clients.
The first quarter GDP figure translates to a 0.9 per cent from the previous three months time, the Cabinet Office data.
Consumer spending, which accounts for about 60 percent of the economy, by 0.6 per cent back. Capital investments by companies moved 0.9 percent of the October-December quarter.
To finance recovery spending, Japan's Parliament at 4 trillion yen ($ 49 billion) fell Budget supplement earlier this month. More government spending are expected to follow in the coming months.
The money is used to build new houses for more than 100,000 people without proper shelter, stones and debris, restoring fishing grounds and offer support for disaster-hit companies and their employers remain clear.
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