Sobering news from Japan: The world's third-largest economy shrank 1.6 percent in the fourth quarter of 2019 - an annualized percentage drop of 6.3 percent - according to a government estimate released yesterday. The decline from the third quarter is the country's biggest contraction since 2014.
Japan absorbed a difficult sales tax hike and grappled with the aftermath of Typhoon Hagibis, a powerful storm that hit the country last fall. The spread of the coronavirus now threatens to stamp out hopes for a recovery in the first quarter.
Analysts say that tourism to Japan, particularly visitors from China, could be hard-hit if the virus is widespread there. New government figures also showed household spending deteriorating, suggesting that the economy already contracted more than first thought at the end of last year.
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