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Japan has gone back into recession. Analysts are thinking this will affect the global economy. Japan's economy unexpectedly shrank for the second quarter in a row, meaning it is in recession. Figures showed that the economy would grow by 2.1% in the last quarter. Instead, gross domestic product (GDP) fell by 1.6%. Economists say the fall is because of an increase in sales tax. Japanese people are cutting back more and are simply not spending.
World leaders are worried Japan's recession could hurt the global economy. British leader David Cameron said there could be a second global economic disaster. He said he saw "red warning lights" because of worldwide "instability and uncertainty". He added: "The Eurozone is teetering on the brink of a possible third recession." He added that emerging markets were slowing down and this was hurting the possibility of growth.
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