This photo taken on Nov. 14, 2023 shows a harbor in Yokohama, Japan. Japan's economy shrank by an annualized rate of 2.1 percent in the July-September period, the government said on Wednesday, marking the first contraction in three quarters. (Xinhua/Zhang Xiaoyu)
TOKYO, Nov. 15 (Xinhua) -- Japan's economy shrank by an annualized rate of 2.1 percent in the July-September period, the government said on Wednesday, marking the first contraction in three quarters.
Real gross domestic product (GDP), the total value of goods and services produced in Japan adjusted for inflation during the third quarter, decreased 0.5 percent from the April-June quarter, according to preliminary figures by the Cabinet Office.
Wednesday's data was worse than economists' estimate of an annualized 0.42 percent shrinkage, as lackluster consumption and capital investment dragged on the economy.
Private consumption fell 0.04 percent in July-September, dropping for the second quarter in a row, as inflation continued to bite in recent months.
Business investment also contracted 0.6 percent, after declining 1.0 percent in April-June, suggesting that companies continued to cut back on capital spending amid price hikes.
Imports, whose growth impacts GDP negatively, expanded 1.0 percent, a rebound from a sharp drop of 3.8 percent in the previous quarter, while exports grew 0.5 percent.
Japan's economy grew a revised 3.7 percent in the first quarter and a revised 4.5 percent in the second quarter on an annualized basis. ■
This photo taken on Nov. 15, 2023 shows people walking past a crossing in Tokyo, Japan. Japan's economy shrank by an annualized rate of 2.1 percent in the July-September period, the government said on Wednesday, marking the first contraction in three quarters. (Xinhua/Zhang Xiaoyu)
This photo taken on Nov. 14, 2023 shows a distribution center for automotive foreign trade in Yokohama, Japan. Japan's economy shrank by an annualized rate of 2.1 percent in the July-September period, the government said on Wednesday, marking the first contraction in three quarters. (Xinhua/Zhang Xiaoyu)
This photo taken on Nov. 14, 2023 shows the skyline of Yokohama in Japan. Japan's economy shrank by an annualized rate of 2.1 percent in the July-September period, the government said on Wednesday, marking the first contraction in three quarters. (Xinhua/Zhang Xiaoyu)
