Japan's economy plunged back into recession in January-March, contracting sharply on the impact of the nation's biggest recorded earthquake, a tsunami and a nuclear crisis, data showed Thursday. The economy shrank by a much worse-than-expected 3.7 percent year on year, marking the second consecutive quarter of contraction, which economists define as a technical recession. In the aftermath of the disasters, output saw its biggest ever fall and spending plunged while consumer and business confidence took a tumble.
Consumers have held off spending on non-essentials such as entertainment and travel.
Well, of course they did, Einstein. The mayor of Tokyo told us that we weren't to celebrate the cherry blossom season with the traditional festivities, the biggest festival in Japan, Sanjya Matsuri was cancelled, our electricity was cut in many places, and we couldn't even buy water - we still can't - in many areas.
And these Keynesian clowns think this is falling "back" into recession? They must be joking. We've been in a recession for over twenty years.