Japan’s economy faces an “unimaginable” contraction, the chief economist of its central bank warned Monday, as figures revealed surging bankruptcies and a big fall in machinery orders. The warning from Kazuo Momma, head of the Bank of Japan’s research and statistics department, came as Japan’s export orders slide, companies shut down production lines and consumers stop spending. Japan, where industrial output plunged a record monthly 9.6% in December, is due to announce Q4 GDP data next week’ economists predict a quarterly drop in GDP of more than 3% – an annualised decline of more than 10%.

This entry was posted by Gwen Robinson on Tuesday, February 10th, 2009 at 5:30 and is filed under Capital markets, People. Tagged with japan. Edit this entry.