Japan's economy contracts for first time in 2 quarters

Reuters

Posted at Nov 15 2021 09:06 AM

A staff member wearing a face shield works at a restaurant along the Omoide Yokocho alleyway in Tokyo's Shinjuku district on April 23, 2021. Philip Fong, AFP/File
A staff member wearing a face shield works at a restaurant along the Omoide Yokocho alleyway in Tokyo's Shinjuku district on April 23, 2021. Philip Fong, AFP/File

TOKYO - Japan's economy contracted at an annualized rate of 3.0 percent in July-September from the previous quarter, government data showed on Monday, posting the first decline in two quarters as resurgent coronavirus infections hurt consumer spending.

The gross domestic product (GDP) figure translated into a quarterly drop of 0.8 percent, worse than economists' median estimate of a 0.2 percent contraction, the Cabinet Office data showed.

Private consumption, which makes up more than half of the economy, fell 1.1 percent, versus a 0.5 percent decline expected by economists, the data showed.

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