Japan on brink of recession

Economy shrinks: A file picture showing shipping containers at a port in Tokyo. Japan’s GDP shrank an annualised 6.3% in the October-December period, much faster than a median market forecast for a 3.7% drop and the first decline in five quarters. — Reuters

TOKYO: Japan’s economy shrank at the fastest pace in almost six years in the December quarter as a sales tax hike hit consumer and business spending, raising the risk of a recession as China’s coronavirus outbreak chills global activity.

Analysts say the widening fallout from the epidemic, which is damaging output and tourism, could have a significant impact on Japan if it’s not contained in coming months.