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Japanese GDP plummets | Japanese GDP plummets |
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The world’s fourth-largest economy saw a sharp contraction in the third quarter | |
The Japanese economy contracted by almost 3% in the third quarter of 2023, suffering its first decline in a year as inflation weighed on household consumption and corporate investment slowed, revised data showed on Friday. | The Japanese economy contracted by almost 3% in the third quarter of 2023, suffering its first decline in a year as inflation weighed on household consumption and corporate investment slowed, revised data showed on Friday. |
GDP in the world’s fourth-largest economy shrank by an annualized 2.9% between July and September, worse than a previously estimated 2.1% contraction and market forecasts for a 2% decline, according to data from the Cabinet Office. | |
“Weakness in personal consumption is likely to continue for the foreseeable future, as real disposable income is likely to extend its decline, which is seen as a factor in sluggish consumption,” said Kota Suzuki, an economist at Daiwa Securities. | “Weakness in personal consumption is likely to continue for the foreseeable future, as real disposable income is likely to extend its decline, which is seen as a factor in sluggish consumption,” said Kota Suzuki, an economist at Daiwa Securities. |
Private consumption, which makes up more than half of the economy, dropped 0.2% in the third quarter, versus the initial estimate of flat performance. Prolonged inflation discouraged shoppers and was cited as leading to the downward revision. | Private consumption, which makes up more than half of the economy, dropped 0.2% in the third quarter, versus the initial estimate of flat performance. Prolonged inflation discouraged shoppers and was cited as leading to the downward revision. |
Inflation-adjusted real wages fell 2.3% year-on-year in October, marking the 19th consecutive month of decline, separate data revealed. | Inflation-adjusted real wages fell 2.3% year-on-year in October, marking the 19th consecutive month of decline, separate data revealed. |
For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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