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Japan Q4 GDP shows economy still in recession, pick-up eyed

Published on Feb 14, 2013 8:20 AM

TOKYO (REUTERS) - Japan's economy contracted for the third consecutive quarter in October-December, showing the country is struggling to escape from a mild recession and adding weight to the new government's push for radical policy steps to revive growth.

Gross domestic product (GDP) fell 0.1 per cent in October-December from the previous quarter, compared with the median forecast of 0.1 per cent expansion, according to a Reuters poll.

The data is unlikely to affect the outcome of a Bank of Japan policy meeting that ends later in the day.

Looking to kickstart the economy and end two decades of deflation, Prime Minister Shinzo Abe plans to combine the country's biggest stimulus spending since the financial crisis with aggressive monetary policy easing.

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