Japanese exports have been hit by the global economic downturn Japan's economy contracted by 3.3% in the last quarter of last year - its worst showing since the oil crisis of the 1970s, official figures show. The contraction means the economy shrank at an annual pace of 12.7% during the October to December period. Economic Minister Kaoru Yosano said Japan faced its worst economic crisis since the end of World War II. The slowdown in the world's second-biggest economy is steeper than that being experienced in the US or Europe. Japan has been hit particularly hard by falling global demand for its products. People had been saying for some time that GDP would be bad, so while the market didn't welcome the numbers there was no excessive reaction
Hiroaki Osakabe, Chibagin Asset Management Exports, particularly of electronics and cars, have slumped and production has been slashed. Consumers have cut back too, alarmed by rising unemployment. "This is the worst economic crisis in the post-war era. There is no doubt about it," Mr Yosano said at a news conference. "The Japanese economy, whose growth is heavily dependent on exports of automobiles, machinery, and IT equipment, was literally battered" by the global downturn, he said. Mild reaction However, Japan's stock market largely brushed off the latest economic news. The Nikkei share index lost 0.4%, while the broader Topix rose 0.7%. "People had been saying for some time that GDP would be bad, so while the market didn't welcome the numbers there was no excessive reaction," said Hiroaki Osakabe at Chibagin Asset Management. Please turn on JavaScript. Media requires JavaScript to play. "The next quarter is likely to also be tough because consumption may well fall off." Mr Yosano said the government would consider new stimulus measures to aid the economy. "Japan alone won't be able to recover. The economy has no border. It is our responsibility to rebuild the domestic economy for other countries," he added. Prime Minister Taro Aso is hampered in his response by a divided parliament and a fractious ruling party. There were reports over the weekend that he is considering another stimulus package of government spending worth 20 trillion yen ($218bn; £152bn). But the latest opinion poll has showed that fewer than 10% of people support the prime minister, who must call a general election by September. Are you in Japan? Have you been affected by the downturn? Send us your comments using the form below: In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. Name
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Official figures show that  has shrunk by 3.3% in the last quarter of 2008—or an annualized 12.7%, the fastest decline since 1974, when the economy contracted by 3.4% in a quarter. The decline in Japan has been sharper than in either Europe or North America, mostly because global demand for the country's products, such as automobiles and electronics, has fallen.

The contraction was also larger than the 3.1% decline that was predicted by economists, the worst decline of any major economic power in the same quarter.

Japanese Prime Minister In comparison, the   contracted 1.5% in the same quarter, and the United States GDP shrank by an annualized 3.8%.

"The data showed a severe picture of the Japanese economy and highlighted the weakness in exports. The January-March quarter is likely to show another minus figure annualized in double digits or something close to double digits," said the chief economist at Norinchukin Research Institute, Takeshi Minami.

There have been reports that Japanese prime minister Taro Aso is considering launching a 20 trillion  (approximately 218 billion) stimulus plan in response to the recession, but he is hindered by a divided parliament, and an approval rating which concurrently fell below ten percent.