Japan's economy slips into recession, raises BOJ policy uncertainty

Pedestrians cross the street in front of luxury shops in the Ginza shopping district of Tokyo. — AFP

TOKYO: Japan's economy slipped into a recession as it unexpectedly shrank for a second straight quarter on weak domestic demand, data showed on Thursday, raising uncertainty about the central bank's plans to exit its ultra-easy policy sometime this year.

The surprisingly weak performance saw Japan lose its title as the world's third-largest economy, replaced by Germany.