Sorry, not helpful at all without some context. Bloomberg.com's headline on this is just a sample of the fear mongering that is out there, and it is just not helpful at all. Here is some context.
Japan's GDP for 2007 as listed by the World Bank was 4,376,705 million dollars, number 2 in the world after the US and Eurozone. If we take those figures and say the GDP has fallen 12.7% from there, since I didn't see 2008's numbers, that means that this year's GDP will be something like 3,820,863.4 million dollars. That would mean that Japan would still be number 2 in the world according to the 2007 figures, ahead of Germany with 3,297,233 mil. dollars in 2007. It means that in the biggest economic bust in decades, the country is still pumping out products and services to the tune of 3,820,863.4 million dollars.
If you want to see some of the bright points of this current decline, give a look at this,
'Liar's Poker' Author Sees Upside To Market Crash.