Japan Falls Into Recession as GDP Shrinks

The video discusses Japan's unexpected economic recession, marked by two consecutive quarters of negative GDP growth. Economists had anticipated a positive shift, but GDP shrank by 0.4% and 1.8% in consecutive quarters. The recession follows a sales tax hike from 5% to 8%, impacting economic performance. This downturn could influence political decisions, including a potential delay in the planned tax hike and a snap election. The government may accelerate decision-making due to the negative economic data, with local media suggesting a possible 18-month postponement of the tax increase.

What was the GDP growth expectation by economists for the latest quarter?

• 0.4% growth

• 1.6% growth

• 2.2% growth

• 1.8% growth

What was the percentage of GDP contraction in the previous quarter before the latest one?

• 0.4%

• 1.8%

• 7.1%

• 2.2%

What was the sales tax increased to in April, which affected the GDP?

• 10%

• 8%

• 5%

• 3%

What political event could be influenced by the negative GDP figures?

• A snap election

• An increase in government spending

• A change in currency policy

• A new trade agreement

How long might the planned tax hike be postponed according to local media?

• 6 months

• 24 months

• 12 months

• 18 months