Japan's economy shrank an annualized 0.7 percent in real terms for the October-December quarter, compared with July-September, bringing the growth rate for calendar 1997 to a scant 0.9 percent, the Economic Planning Agency said March 13.
Negative consumer and corporate sentiment caused by major financial failures last fall coupled with economic crises elsewhere in Asia were seen as the main factors for the contraction.
In releasing the figures, the EPA effectively admitted what most analysts had already predicted -- that the economy would see negative growth for the first time in 23 years in fiscal 1997, which ends March 31.
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