Highlighting the magnitude of the ongoing synchronized global recession, Japan's GDP shrunk at an annualized 12.7% in 2008 Q4. Even as the U.S. and various other nations embark on sizable stimulus packages, very substantial downside risks remain.

This evening, Bloomberg.com reported:

Japanís economy shrank the most since the 1974 oil shock last quarter amid an unprecedented collapse in exports and production.

Gross domestic product fell at an annual 12.7 percent pace in the three months ended Dec. 31, the Cabinet Office said today in Tokyo. The median estimate of 26 economists surveyed by Bloomberg News was for an 11.6 percent contraction.
Bloomberg.com: Worldwide