We think we have it bad: Spotlight on Japan

The U.S. economy contracted by approximately 3.8% in Q4 2008 while the EU zone contracted by approximately 1.2%. Compare this to Japan, whose economy shrunk by 12.7% in the same period. This is a direct result of Japan's export dependent economy and the appreciation of the yen which makes Japanese exports more expensive to foreign consumers. The Government of Japan is expected to pass stimulus bills in the hopes of spurring consumption, but the public remains doubtful. With public opinion extremely negative (especially towards the PM Aso, who has abysmal approval ratings), it is unlikely any stimulus will improve the economy until confidence is regained. Many Japanese businesses are looking to the government to intervene in the currency market so as to devalue the yen.