Japan Slips Into Recession, Loses Spot as World's 3rd Largest Economy

• Japan's economy contracted 0.4% in Q4 2023, pushing the country into recession and losing its spot as 3rd largest economy to Germany • Weak domestic consumption was main factor; private consumption fell 0.9% and capital expenditures dropped 0.3% • Exports rose 11%, providing some support; inbound tourism spending also increased • Nikkei index hit 38,000 level for first time since 1990 despite technical recession • Some economists expect moderate recovery in Q1 2024 due to stabilization of inflation and expected wage growth