ISTANBUL

The Japanese economy entered a recession unexpectedly after shrinking during the two consecutive quarters in 2023.

Japan's gross domestic product (GDP) contracted by 0.4% in the last quarter of 2023, after shrinking by 3.3% in the third quarter, official figures from the country's Cabinet Office showed on Thursday.

With these figures, Japan lost its position as the third largest economy of the globe to Germany.

Japan's GDP totaled $4.21 trillion, while Germany's GDP amounted to $4.46 trillion, largely because of the yen's sharp drop, Kyodo News reported.

The German economy has also recently entered a recession.