TOKYO (AP) — Japan’s economy slipped into a contraction in the third quarter, decreasing at an annual pace of 2.1% as consumption and investments shrank, the government reported Wednesday.
The third quarter's performance was far worse than what had been expected, according to the financial services company ING, which had forecast an annual contraction of 0.5%.
Political Cartoons View All 1247 ImagesPrivate consumption shrank an annualized 0.2% during the quarter, while corporate investment decreased 2.5%.
Economic activity in the previous two quarters got a boost from recovering exports and inbound tourism.
Public demand, which includes government spending, rose at an annual pace of 0.6% in the latest quarter.
Persons:
” Robert Carnell, ING's, Fumio Kishida, ___ Yuri Kageyama
Organizations:
TOKYO, ING, Auto, Bank of Japan
Locations:
Asia, Pacific, Japan