That was the first contraction

The economy, the biggest in the world gucci outlet after those of the United States and China, shrank 0.6 percent in the October-December quarter compared with the previous three months. On an annualized basis, the contraction was 2.3 percent, a sharp turnaround from the 7 percent increase recorded three months earlier, and a figure that was markedly worse than analysts had expected. For 2011, a year that was overshadowed by the massive earthquake and tsunami that hit the country’s north-east in March, the Japanese economy contracted by 0.9 percent. That was the first contraction since the global financial crisis in 2008 and 2009, gross domestic product data released by the cabinet office Monday showed. The Japanese economy was hit hard by the March 11 disaster, which killed thousands and crippled manufacturing and supply chains in Japan and beyond for months. A rebound set in once manufacturing resumed and reconstruction activity kicked in. But the slowdown in the global economy, which has become more and more pronounced in the past few months, has helped to undermine that recovery, Monday’s data showed, while months of severe flooding in Thailand, where many Japanese companies have manufacturing operations, dented output late last year. The persistent strength of the yen also has weighed gucci bags on Japanese companies. The Japanese currency has been hovering at about 77 yen per U.S. dollar since July last year (compared with about 90 at the start of 2010 and 97 in mid-2009), putting an extra burden on exporters by making their goods more expensive for shoppers in the United States. Earnings reports from several Japanese corporate giants over the past two weeks have underlined this picture. Toyota reported last week that its net profit had slipped 13.5 percent, to ¥80.9 billion, or $1.05 billion, in the last three months of 2011, while Sony on Feb. 2 posted a net loss of ¥159 billion for the quarter. The electronics giant also warned that it expected to post a loss of ¥220 billion for the year that ends in March. In addition, both Sony and Panasonic had their debt ratings downgraded this month by Moody’s Investors Service, which cited concerns about continued losses in their television divisions. Although the negative impact of the flooding in Thailand is fading, overseas demand for its goods is expected to remain challenging, analysts believe. The central bank, which is holding a two-day policy meeting Monday and Tuesday, is under pressure to help stimulate the economy, analysts say, though many believe it may hold off any further action this week. Hiromichi Shirakawa and Takashi Shiono, economists at Credit Suisse in Japan, commented in a note, “The outlook for the U.S. economy — and hence the broader world economy — has taken a turn for the better gucci shoes of late, and with domestic production already rebounding from the Thai floods,” they expect to see growth of around 1.5 percent in the first quarter of 2012.