JAPAN: Third quarter GDP figures show economy shrunk 0.9% on the previous quarter, an annualised drop of 3.5%

Record ID: 466718

  • Title: JAPAN: Third quarter GDP figures show economy shrunk 0.9% on the previous quarter, an annualised drop of 3.5%
  • Date: 12th November 2012
  • Summary: TOKYO, JAPAN (FILE) (REUTERS) VARIOUS OF EXTERIOR OF BANK OF JAPAN
  • Embargoed: 27th November 2012 12:00
  • Keywords:
  • Location: Japan, China
  • City:
  • Country: Japan
  • Topics: Economy
  • Reuters ID: LVA3VD4OAGKH4IXNK2IVK5PFEHZW
  • Story Text: Japan's economy shrank 0.9 percent in the three months to September, government data showed on Monday (November 12), suggesting slowing growth and tensions with China are nudging the world's third-largest economy into recession.
    The fall in gross domestic product (GDP) marks the first contraction in three quarters, and translates into an annualised 3.5 percent fall.
    Japan is now under pressure to further boost monetary stimulus as a strong yen and a territorial row with China add to the impact of the global slowdown on exports.
    "At 8.50 this morning data was released for Japan's gross domestic product. On an annualised basis the figures showed GDP dropped by 3.5 percent. I feel these are very serious numbers," Japanese Prime Minister Yoshihiko Noda told a lower house budgetary committee, adding he would deal with economic policy with a "sense of urgency".
    Japan's benchmark Nikkei 225 index slid on the news, dropping about 0.7 percent in early morning trade.
    The country's economy outperformed most of its Group of Seven peers in the first half of this year on robust private consumption and spending for reconstruction from last year's earthquake.
    But growth has stalled since then and many analysts expect Japan to suffer two straight quarters of contraction -- meeting the popular definition of a recession -- in the latter half of this year, as China's slowdown and the widening fallout from Europe's debt crisis hit exports.
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