Is Japan Leading the Way into Recession?

Japan has been the benchmark for the health of Asian economies for a considerable amount of time. The BBC reports that Japan's economy shrunk by 2% in Q2 of this year:

The world's second largest economy contracted at an annualised rate of 3% in the April to June quarter, as both domestic demand and exports weakened.

It was the first decline in more than a year, and the biggest since the third quarter of 2001.

Most economist consider 2 consecutive shrinking quarters to be the definition of a country being in recession. We'll find out next month if it shrinks anymore. If yes, Singapore and the rest of Asia can't be very far behind. While the past couple of years of growth have been incredible, I did think the economy was a bit over-inflated. So a market correction was due. It just looks like there's going to be more than just a correction. The job market is slowing, but prices are still going up. My company's cutting a few hundred people off its staff list and if things get any worse I might even see myself among those being given boot.

It's not only Asia that's tottering on the edge of recession, European economies are starting to flag too. I guess our only consolation at this time is that slower growth is still growth.