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Japan has slipped back into recession, leaving financial analysts to ponder over implications for global economy. Japan's economy unexpectedly shrank for second consecutive quarter. Two successive negative quarters officially puts country in recession. slide in last quarter has taken economists by surprise. Figures indicated that Japan's economy would grow by 2.1 per cent in last quarter. Instead, gross domestic product (GDP) fell by 1.6 per cent between July and September. Many economists attribute fall to April's increase in sales tax from five to eight per cent. Many Japanese consumers have tightened their purse strings and are simply not spending.

World leaders are worried that Japan's slide back into recession could be ominous for global economy. British leader David Cameron said world was on brink of second economic disaster. He told reporters he saw "red warning lights" for global economy because of international "instability and uncertainty" and slowing of growth in emerging markets, especially Brazil and China. Mr Cameron said problems were "plain to see". He added: " Eurozone is teetering on brink of possible third recession, with high unemployment, falling growth and real risk of falling prices. Emerging markets, which were driver of growth in early stages of recovery, are now slowing down."

 
 

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