The rate of decline in GDP, which measures living standards, was 3.0 per cent in July – September. In the market, it was expected to be 0.8 percent.
World The rate of contraction of Japan’s third largest GDP was 3.0 per cent in July – September, according to preliminary data released on Monday.
Supply disruptions have hit Japanese exports and corporate investment. In addition, new coronavirus infections have undermined consumer confidence in the economy.
The market estimated in advance that the rate of economic contraction would have been 0.8 per cent in July – September.
Quarters data on the development of gross domestic product are reported as an annual change. So they tell you how much the economy is growing or shrinking at the rate of one quarter a year.
“The contraction is clearly larger than expected due to supply constraints, which has hit hard in car production and capital utilization,” said chief economist at research firm Norinchukin. Takeshi Minami.
The company expects the economy to recover in the current quarter, but forecasts that it will remain relatively slow.
Japan the economy is in a weaker position than many other advanced economies. The world’s largest economy is the United States economic growth rate was 2.0 per cent in July to September.
The Prime Minister of Japan Fumio Kishidan a major economic recovery program is scheduled to be unveiled on Friday, but some economists doubt its impact on medium-term economic growth.
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