Japan Hard Hit by Global Economic Woes

Japan, which has the largest economy in the world outside of the United States, is feeling the affects of the worldwide economic mess. According to the Kaoru Yosano, the finance minister of Japan, the country will need more than $200 billion in public spending to help Japan reverse their recession.

Japan Flag (Image: Flickr)

Japan has seen its economy contract massively in recent months. Many experts believe that Japan is on pace to see their economy contract by a double-digit percentage amount in 2009 alone.

Although there are many factors that have led to Japan’s troubles, the United States being in a recession of their own is a large factor. With consumer spending down in the U.S., many Japanese businesses that rely on exports are seeing their profits vanish.

Historically, Japan has had one of the lowest jobless rates on the planet. However, recent reports indicate that Japan now has a uncharacteristically high 4.1% jobless rate.

The Japanese government has already decided on a stimulus package worth almost $100 billion that has the goal of getting cash back into hands of their consumers and to help businesses survive these tough times.

Source: Wire Reports