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Japan enters into recession
12/11/2012 9:51:38 AM

Japan’s economy has faltered due to a slowdown in exports prompted by the eurozone crisis and a diplomatic spat with China, the Guardian reported. A strong yen has also slowed exports.

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“It shows how vulnerable Japan is to external demand conditions in Europe and Asia,” Tomo Kinoshita, chief economist at Nomura in Tokyo, told the Financial Times.

Experts expect the recession to linger as exports continue to be weak and domestic demand is stagnating with a tight labor market, the Financial Times reported.

In November, Prime Minister Yoshihiko Noda’s government approved a $10.7 billion spending package to stimulate the economy, but he and his Democratic party face a tough battle to hold onto power in elections scheduled for Dec. 16, the Guardian reported.

According to the Guardian: