Industrial output in Japan has dropped significantly this year as the country finds itself plunging into a recession.
In January, industrial production dropped by 7.5% compared to the month before, Reuters has reported, citing data recently released by Japan’s Ministry of Economy, Trade and Industry.
The figures in question suggest a decline in 14 out of the 15 industries surveyed by the ministry, including motor vehicles (17.8% drop) and electrical machinery and electronics (8.3% drop).
"The plunge in industrial production in January suggests that the GDP will fall yet again this quarter, which will add to the view that Japan's economy is in recession," Gabriel Ng, assistant economist at Capital Economics, told the media outlet.
This industrial output decline reportedly turned out to be worse than the market median forecast (7.3%), with ministry officials suggesting that the projected production gains in February in March.
Data disclosed by the Japanese government earlier this month shows that Japan lost its status as the world’s third-largest economy in terms of nominal GDP to Germany during 2023 and entered a recession in the fourth quarter of that year.
Japanese government data that emerged in media this month also revealed that the country ended 2023 with a record-high debt of $8.6 trillion.