The days might not be that sunny in the land of the rising sun. With the tensions surmounting the world economy, Japan just could not help itself from catching the same fire. The third largest economy is in a situation that will take the nation to an unprecedented slowdown because of which the government will reconsider its growth rate for the second quarter and will be deciding on trimming down the numbers that were previously expected to be higher.

Japan, yet to recover from the aftershocks of Tsunami, is again faced with economic shakes that have not only hit its exporting industries but also a slowing personal consumption which accounts for 60% of the economy. The country is still under reconstruction after it witnessed the worst wrath of Mother Nature which was more devastating than the world war bombings. The only silver lining in the economy right now is the demand for reconstruction that has moderated the growth, yet at a sluggish pace.

Japan’s growth rate was at the slowest pace of 0.3% in the April-June period which primarily was the effect of the Euro Debt crisis. The government has cut down its expectations for the second quarter as well since the conditions does not seem to be any better in any other economies that welcomes Japanese exports. July data had shown the sharpest drop in exports since January and the government has decided to cut its outlook view of exports for the second quarter as well.

With declining shipments overseas and factory output leveled off, it only seems that Japan has a bigger task of speeding up with the recovery. The government will not have any other options than injecting new stimulus packages into the Japanese economy unless any positive results come as a surprise from the rest of the world mainly the US and the Euro Zone. This time it’s not just Mother Nature that Japan has to fear of and be prepared for.