The economy shrank at an annualized pace of 0.4 percent in the three months through September, posting its second consecutive quarter of negative growth amid the global financial crisis and indicating Japan has entered a recession for the first time since 2001.
The Cabinet Office in a report issued Monday said weak domestic demand and a rise in imports led gross domestic product to contract for the second straight quarter, following an annualized 3.7 percent fall in April-June.
The GDP figures "show that the economy is in a recessionary phase," defined as two successive quarters of contraction, Kaoru Yosano, economic and fiscal policy minister, told reporters.