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 significance of the GDP figures in relation to a snap election in Japan?

What actions might the government of Japan take in response to the negative GDP numbers?