That decline, the third consecutive monthly drop, was worse than the 0.5 percent contraction that economists had forecast.

Private economists foresee a 1 percent contraction in the Japanese economy this year.

And economists noted that the comparable period in 1995 had been the worst in the crisis, with a nearly 10 percent contraction.

The 25 percent contraction in the November trade deficit matched almost exactly the increase reported last month for October.

It had previously predicted a 1 percent contraction.

The Government had forecast a 15 percent contraction in the economy for 1998.

After six years of decline, including an 11 percent contraction in 2002, the Argentine economy expanded 8.7 percent last year.

"The Long Island economy can readily absorb even a 30 percent contraction of the current work force within its major defense firms," the report said.

The Netherlands was an even bigger surprise, shrinking 0.3 percent, when analysts had expected an 0.1 percent contraction.

The data now show two quarters of decline in 1980 - a sharp drop of 7.9 percent, followed by a 0.6 percent contraction.