Japanese economy shrinks at fastest rate in 35 years Japan is heading for its worst recession since the second world war after the world's second biggest economy shrank in the last quarter at its fastest rate for 35 years.
The economy contracted by 3.3% between October and December, as firms were hit by weak exports and a fall in demand at home, the cabinet office said.
At an annualised rate of 12.7%, the decline in Japanese GDP was three times that of the US during the same quarter. GDP fell by 1.5% in the eurozone, and by just under 1% in the US.
Most economists expect the trend to continue well into the year amid warnings that
Japan faces a recession on a scale not seen since the war.
"There is no question that this is the worst recession of the postwar period," the economic and fiscal policy minister, Kaoru Yosano, told reporters.
Last quarter's slide in GDP was only marginally smaller than the 3.4% contraction seen in 1974 after
the first Middle East oil shock.
The collapse in external demand for Japanese manufactured goods accounted for 3% of the contraction, as major auto and electronics makers slash production in an attempt to reduce their huge inventories.
Faced with approval ratings of around 10%, the prime minister, Taro Aso, is reportedly mulling a fresh stimulus package worth ¥20-30 trillion (£150bn-£230bn), on top of the ¥12trn he has already unveiled since last autumn.
Analysts said Japanese exporters should brace themselves for more bad results for the first quarter of this year.
"Given the rise in inventory and decline in final demand, output adjustments will continue in January to March, paving the way for another big contraction in the first quarter," Tatsushi Shikano at Mitsubishi UFJ Securities told Reuters.
If that happens, it will be the first time the economy has contracted for four straight quarters since the second world war.
"Japan's economy may start picking up from April to June onwards" as the US stimulus package passed last week begins to take effect, Shikano added, "but it will be a very weak recovery amid a lingering recession."
Exports, which account for around a fifth of the Japanese economy, fell by a record 13.9% during the quarter.
Consumer spending, which accounts for 55% of GDP, fell 0.4% amid slumping demand for cars, electrical appliances and clothes.
http://www.guardian.co.uk/business/2...apan-recession
Also:
850 jobs go at Mini car factory BMW has confirmed that 850 jobs are to go at the Cowley plant in Oxford, which makes the Mini, and that weekend working has been scrapped.
All agency workers who did the weekend shift at the factory have lost their jobs, with immediate effect.
The site is closing for a week after a fall in sales as a result of the economic downturn.
The carmaker also said it had identified 150 surplus workers at its Mini plant in Swindon.
The workers will be offered a transfer to work in Oxford, it added.
Job losses
Work at the Cowley plant will not restart until 23 February. The changing shift patterns, and the resulting job losses, will come into force on 2 March.
"Mini plant Oxford will be bringing in a new shift pattern in response to continuing volatile market conditions," a BMW statement said.
"As of Monday 2 March, the plant will go from a three-shift to a two-shift pattern, operating five days per week instead of the current seven."
"The company regrets that this change will result in the release of around 850 agency workers from the business," it added.
BMW had said that all staff at the factory, including remaining agency workers, would be paid their basic wages during the closure.
However, many agency workers said they were unclear what the future held after being told the weekend shift had been axed.
'A disgrace'
Javid Najibi said he had been told to leave after four years at the plant and that he was likely to get no payout.
"It's bad news for everybody. There's no work any more for the weekend shift. No-one knows about the future plans," he said.
Another agency worker told the BBC that he felt like a "second class" employee compared to the permanent staff.
"It's a disgrace," he said.
"I've worked here for three-and-a-half years and now I'm being sacked for no reason. I've been used."
A Mini spokesperson had confirmed at the weekend that the company was in discussions with Unite union representatives over changes to shift patterns at the plant.
"Our first priority is to communicate with the workforce," the spokesperson had said.
'Angry and upset'
However, staff were angry about the way in which they were told about their job losses.
Bernard Moss, from the union Unite said: "[The workers] obviously weren't very happy and the biggest issue was being told one hour from the end of the shift that they hadn't got a job."
Worker Silvia Fernandes said: "I've been here for four years and I've never been sick, I've never missed work and they tell me one hour before that I've been sacked. That's not on.
"That's why people are angry and so upset with BMW and the union."
The company's 4,500 staff had returned to work on 5 January after an extended four-week Christmas holiday.
In December, 300 agency staff were told there would be no more work for them at the plant after the Christmas holiday.
I still predict just seeing the tip of the iceberg, not full hit yet, hope I'm wrong, still predict riots and things, once gets worse and something triggers it off.
Tough times ahead, tests ones resolve, meaning who do people turn to, man (government) or God.
Money, (mammon) or God.
I guess if our security is in God, nothing really to fear:
Matthew 6: 24 "No one can serve two masters, for either he will hate the one and love the other; or else he will be devoted to one and despise the other. You can't serve both God and Mammon.
25 Therefore, I tell you, don't be anxious for your life: what you will eat, or what you will drink; nor yet for your body, what you will wear. Isn't life more than food, and the body more than clothing?
26 See the birds of the sky, that they don't sow, neither do they reap, nor gather into barns. Your heavenly Father feeds them. Aren't you of much more value than they?
27 "Which of you, by being anxious, can add one moment{literally, cubit} to his lifespan?
Easy said than done though eh, all too easy if you suddenly lose your job and say have a family to support and not much hope of getting another job, can become depression, fearful and much more.
Blessings Lee.
Linear Mode
