The country's gross domestic product contracted at an annual rate of 0.4 percent from July to September, marking the second consecutive quarter of negative growth -- the technical definition of a recession. Japan's previous recession was in 2001, after the collapse of the dot-com bubble in the United States.
Japan's economy minister warned that the situation could worsen: Collapsing sales of Japanese goods in the United States and Europe amid the global downturn threaten to make the country's export-dependent economy even weaker in coming months.
"Downside risks to the economy are growing further, and Japan is in a very serious situation," Kaoru Yosano said at a news conference.
Guess what Japan has that is causing further problems. -Massive public debt left from their bank bail out from their housing bubble crisis in the 1990's.