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Japan has slipped into recession, leaving financial analysts to ponder the implications the global economy. Japan's economy unexpectedly shrank the second consecutive quarter. Two successive negative quarters officially puts a country recession. The slide the last quarter has taken economists surprise. Figures indicated that Japan's economy would grow 2.1 per cent the last quarter. Instead, gross domestic product (GDP) fell 1.6 per cent between July and September. Many economists attribute the fall April's increase 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 recession could be ominous the global economy. British leader David Cameron said the world was the brink a second economic disaster. He told reporters he saw "red warning lights" the global economy because international "instability and uncertainty" and a slowing growth emerging markets, especially Brazil and China. Mr Cameron said the problems were "plain to see". He added: "The Eurozone is teetering the brink a possible third recession, with high unemployment, falling growth and the real risk falling prices. Emerging markets, which were the driver growth the early stages of the recovery, are now slowing ."

 
 

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