Japan GDP implodes

Japan's GDP shrank by a record annualized pace of 15.2% in 1Q which comes on top of a 14.4% drop in the final quarter of last year. In comparison, US GDP fell 6.1% in the quarter just ended.

The world's second-largest economy is heavily dependent on exports and the collapse in demand around the world has taken a particularly heavy toll on activity. Furthermore, the strength of the yen has impeded the competitiveness of overseas sales - a strong yen makes exports more expensive - and has exacerbated an already bad situation.

Businesses have responded by sharply curtailing expenditures, while Japanese consumers also retrenched. However, recent signs suggest 1Q may be the low-water mark for the economy.