Japan's economy shrinks as consumers hold back on spending
Japan's economy has contracted at an annual rate of 1.2% in the July-September quarter, as consumption declined amid rising prices
TOKYO (AP) — The Japanese economy contracted at an annual rate of 1.2% in the July-September quarter, as consumption declined amid rising prices.
Seasonally adjusted real gross domestic product for the world’s third-largest economy shrank 0.3% on-quarter, according to government Cabinet Office data released Tuesday. The annual rate shows how the economy would have grown if the quarterly rate were to continue for a year.
Japan’s GDP, or the sum of the value of a nation’s products and services, was weaker than analysts had expected, coming after three-quarters of moderate growth. Like many nations, Japan has suffered as the coronavirus pandemic slammed industrial production and tourism.
Private consumption grew 0.3% in July-September, slowing down from the 1.2% growth recorded the previous quarter. Private investment grew 1.5%, down from 2.4% growth in the previous quarter.
