Japanese Economy Shrinks 12.7%

Employment in Japan's once-mighty manufacturing sector has fallen below 10 million for the first time in five decades, as a new government vows to stoke the struggling economy. Official employment data released Friday showed the number of workers in Japanese industry, which fuelled the country's stratospheric rise from the ashes of World War II, slipped to 9.98 million in December. That is the lowest level since 1961 as firms slash costs and ship manufacturing jobs to lower-cost nations overseas.

The global economy took another turn for the worse as Japan plunged into recession following two consecutive quarters of growth. Please consider Japan’s economy shrinks annualized 3.5%. Japan’s economy shrank an annualised 3.5 per cent between July and September, the steepest decline since the earthquake-hit first quarter of 2011, as exporters suffered big falls in shipments to key markets such as China and Europe.

First Quarter GDP 2009 in the USA was down 6.1%. This is after a revised 6.3% drop in fourth quarter of 2008 (preliminary fourth quarter report showed a 6.2% decline). Real exports of goods and services decreased 30% in the first quarter, compared with a decrease of 23.6% in the fourth. Real imports of goods and services decreased 34.1%, compared with a decrease of 17.5%.

Inquiring minds are looking at charts from the New York Times that show U.S. Trade in 2012 Outpaced Many Other Countries.

Inquiring minds investigating the collapse in Europe note Euro-Zone Industrial Production Declines Steeply Industrial production in the 17 countries that use the euro fell sharply in September as weak output across both the core and peripheral economies added to expectations for a poor third quarter gross domestic product print Thursday.

Japan's 4th Quarter GDP Unexpectedly Contracts at 2.3% Annualized Rate The Financial Times reports Japan’s GDP shrinks in fourth quarterFebruary 13, 2012 Japan’s economy shrank for the third time in four quarters between October and December, after floods in Thailand damaged production, and a strong yen and subdued overseas demand hurt exports.

Bloomberg reports Japan Machine Orders Fall More-Than-Estimated 7.1% as Yen Climbs Japan’s machinery orders fell at the fastest pace in three months in December as a faltering global economy and gains by the yen dimmed the outlook for exporters.

There are numerous signs the entire Eurozone is in recession, including Germany. Nonetheless economic dunces talk as if recession can be avoided. For making just that claim, I blasted the IMF on Monday in Dimwit Comment of the Day: Christine Lagarde, IMF Director says "Europe May Avoid a Recession This Year". Let's ponder a sampling of data released today that proves without a doubt Europe is already in recession.