Japanese Prime Minister Shinzo Abe has called for snap parliamentary elections for next month , following news that the country had slipped into a recession . Abe also announced an 18-month delay in a controversial sales tax hike during a press conference Tuesday . The prime minister said he will dissolve the parliament 's lower house on Friday . The Japanese economy slipped into recession in the third quarter . Gross domestic product shrank by an annualized 1.6 % in the three months ended September , Japan 's Cabinet Office said Monday . The result was much worse than the 2.2 % expansion expected by economists . On a quarterly basis , Japan 's GDP declined by 0.4 % as business investment slipped . Economies are commonly described as being in a technical recession after two straight quarterly contractions . Japan has more government debt that any other nation , a top concern for supporters of the tax rise . Critics say Tokyo must find ways to generate solid growth before turning to fiscal matters .
Japan 's PM Shinzo Abe calls for snap parliamentary elections in Japan . News reports that that country had slipped into recession . Abe also announced a delay to controversial plan to raise income tax .