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Japan Grapples With Falling Economy

Article-Japan Grapples With Falling Economy

The Japanese may be looking for its own economic stimulus plan as the country's economy falls to its lowest state since the first oil crisis in 1974. Japan has not suffered much directly from the bursting of bubbles in U.S. credit and housing markets, but its heavy dependence on exports and persistently soft domestic consumption has led to a sharper contraction than other major economies. <br /><br />

The Japanese may be looking for its own economic stimulus plan as the country's economy falls to its lowest state since the first oil crisis in 1974.

Japan has not suffered much directly from the bursting of bubbles in U.S. credit and housing markets, but its heavy dependence on exports and persistently soft domestic consumption has led to a sharper contraction than other major economies. As the rich world faces its worst downturn in decades, the Group of Seven (G7) policymakers pledged at the weekend to do all they could to combat recession.

With exporters cutting production and laying off staff and many retailers reporting sharp falls in sales, economists saw little hope of a bounce back for Japan.

Source:  CNBC.com,  Japan's Economy in Biggest Dive Since 1974