Share on Facebook Share on Twitter Share on Reddit + - Japan in recession By Houses and Holes in Featured Article, Global Macroat 1:02 pm on December 10, 2012 | 17 comments Japan is the first major economy to officially enter recession in 2012. Today its 3Q Final GDP came in at -3.5% annualized, prior was -3.5% so recession it is! Share on Facebook Share on Twitter Share on Reddit + - YOU MAY ALSO BE INTERESTED IN Waiting for the helicopterLast night the US dollar firmed after yesterday's HIA: Land prices hit record as sales evaporateBy Leith van Onselen The Housing Industry Salt: You don't have a house 'cause you are lazyBy Leith van Onselen KPMG's Bernard Salt hasResidex: Bounce arrives for Sydney propertyBy Leith van Onselen Residex has released its Comments MJV December 10, 2012 at 1:14 pm It looks like the Asian Century is advancing apace. Houses and Holes December 10, 2012 at 1:15 pm It’s early. BotRot December 10, 2012 at 1:15 pm “Japan in recession” Again? Or, Still? overflow December 10, 2012 at 1:16 pm Australia will follow. Bring it on, it’s long past time for our own financial reset, and the painful recession that goes with it to teach the indebted some hard lessons. Janet December 10, 2012 at 1:16 pm “Liberal Democratic Party … has called for more fiscal stimulus and “unlimited” monetary easing…” I suppose if the horse is dead, they may as well keep floggin it….. Neznam December 10, 2012 at 1:30 pm Wonder if we will get individual states in recession but Australia still continuing to avoid a recession ? Jack December 10, 2012 at 2:56 pm Last weeks figures showed that Tassy and Victoria are in recession. Only places that were positive was WA, NSW and ACT. thomickers December 10, 2012 at 1:56 pm someone once said that the Japanese economy is a bug in search of a windshield MJV December 10, 2012 at 2:33 pm +1 Fred Dag December 10, 2012 at 5:05 pm John Mauldin thomickers December 10, 2012 at 7:14 pm +1 Rhett December 10, 2012 at 1:59 pm who started this whole 2 negative quarters rumour anyway? thomickers December 10, 2012 at 7:16 pm yeah i know the formula is a bit strange… you could suffer some economic badluck (ie double faulting in tennis with 2 footfaults by 1 millimeter each) Explorer December 10, 2012 at 2:25 pm And no austerity in sight? http://www.tradingeconomics.com/japan/government-budget (You can change dates and go back to eg 1985 if you wish) MJV December 10, 2012 at 2:39 pm I’m not sure that there’s ever been a country in a vice grip quite like Japan. Monstrously large public deficit and outstanding debt, an economy in recession with few options left on the table to grow, and a declining labour force. Yet all the while being (I believe) the world’s largest creditor nation. This in my view precludes an abrupt crisis of the kind that other countries have suffered, but I may be wrong. I do expect a slow withering that perhaps gathers pace if they are forced into a massive monetization project once domestic savings are exhausted. tanmedia December 10, 2012 at 5:17 pm Were the other countries creditor nations too? I also wonder how they stack up in terms of industrial production. Jud December 10, 2012 at 6:02 pm Massive NIIP and current account surplus though.