Revised economic figures from the Japanese Cabinet Office show Japan's GDP contracted for a second straight quarter between July and September, sending the world's third-largest economy officially into recession. The Japanese economy contracted at an annualized rate of 3.5% in that quarter, with the April-to-June quarter's figures revised downward from slight expansion shown earlier into contraction at an annualized rate of 0.1%.
With a strong yen crimping exports and a feud with China still simmering, many observers see further struggles for the nation. Capital expenditure also fell for the prior quarter, sinking below economist projections in declining by 3%.
A contracting GDP will likely increase pressure on the Bank of Japan to loosen monetary policy. The data furthermore comes on the doorstep of upcoming elections that could greatly affect Japan's economic outlook. The nation's Liberal Democratic Party, headed by former Japanese Prime Minister and loose-monetary-policy supporter Shinzo Abe, is projected by polls to have the inside track to winning the largest number of seats in the country's lower house of parliament.