Japan's economy unexpectedly slid back into recession Monday, spreading gloom over financial markets and raising fresh concerns about the sustainability of the global economic recovery.

Japan's sudden recession reflects ongoing concerns about growth in China and Europe. These concerns have implications for Canada's economy, according to Professor Marvin Ryder at McMaster University's DeGroote School of Business.

"When Prime Minister Harper or his Finance Minister tells you they are still a little reluctant to declare a recovery, this is why," Ryder told CTV News.

Ryder says that Canada, which depends on global exports of grain and oil to maintain growth, could feel the pain of ongoing global economic malaise. He doesn’t think this Japan event will trigger a global recession, and could it be shortlived.

“But still it shows the global economy is not functioning on all cylinders,” he said. “ And as a country that has to export to get the Canadian standard of living we like, we don't want the rest of the world to be suffering.”

Factors in Japan

Japan's Gross Domestic Product (GDP) shrank by 1.6 per cent in the third quarter, confounding the global consensus of 2 per cent growth. The surprise drop follows a big drop of 7.3 per cent in the previous quarter due to an unpopular sales tax hike that froze Japanese consumer spending.

Following the unwelcome economic news, Japanese Prime Minister Shinzo Abe is expected to delay a planned sales tax increase for next year. This could prompt a snap election next month.

Ryder believes Japan will recover, predicting a return to growth in the fourth quarter, but acknowledges ongoing uncertainty over the direction of the world's 3rd largest economy.

"Japan has the highest debt load in the developed world and it looks like (Abe) will need to borrow more money -- we could see a change in leadership," he said.

But according to Ryder, Japanese recessions are nothing new.

"They had a recession in 2008 just like the rest of us, and then they had another one in 2010, and then there was the recession in 2012 which was caused by Fukushima and now again in 2014, it seems to be the even years that they get a recession there," he said.

"It's just another sign that we're not all functioning on all cylinders and it may be 2015 or 2016 before we can say that."