Japan is back in recession after its economy shrank at a worse-than-expected annualised rate of 0.8 per cent in the third quarter.
The figure, which came in well below expectations of a 0.3 per cent fall, is a fresh blow to Prime Minister Shinzo Abe’s efforts to end deflation and revitalise economic growth.
Although there is little sign of the economy falling into a downward spiral, sluggish demand makes it harder to persuade companies to raise wages and investment next year.
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