Japan recession in 2011

First, the natural catastrophes. Now, the economic disaster.
The massive earthquake and tsunami that hit Japan in March 2011 brought the world’s third largest economy back into recession, after its Gross Domestic Product (GDP) contracted by 0.9% during the first quarter of the year.
In the last quarter of 2010, the Japanese economic output, measured by GDP, fell by 0.3% compared to the previous quarter.
Japan is, technically, now back in recession because the generally accepted of recession is “two consecutive quarters of negative economic growth.”
Japan fell into recession during the global subprime mortgage crisis in 2007 but emerged from it in 2009. Since then, the country has not experienced two consecutive quarters of negative economic growth, that is, until the March 2011 natural disasters.
Analysts forecasted the country’s economic output to shrink  by 0.5% during the first quarter of 2011 but figures recently released by the Bank of Japan showed that the contraction in the economy was 0.9%, with the full-year (annualized) decline expected to reach 3.7% — as opposed to a 2.0% growth forecast by the government.
More gloomy figures in Q1 2011:

  • Japan’s public consumption fell 0.6% as citizens cut down on spending
  • Consumer confidence index dropped to 33.1 (a reading below 50 suggests consumer pessimism)
  • Japan’s trade surplus fell by 34.3% year-on-year, suggesting fewer exports

The only good news (at least for debtors and businesses) is that the Bank of Japan is expected to keep the interest rates at 0.0%-0.1% to help stimulate the economy.
Related reading:

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

3 thoughts on “Japan recession in 2011”

Leave a Comment