Japan’s economy unexpectedly shrank for the first time in a year in the third quarter, stoking further uncertainty about the outlook as global recession risks, a weak yen and higher import costs took a toll on household consumption and businesses.
“The contraction was a surprise,” said Takeshi Minami, chief economist at Norinchukin Research Institute. Highlighting concern about a resurgence of the pandemic, Japan will face new daily COVID-19 infections topping 100,000 on Tuesday for first time in two months, Fuji Television reported. In the third quarter, private consumption, which makes up more than half of the Japanese economy, grew 0.3 per cent, a touch above the consensus estimate for 0.2 per cent growth but slowing sharply from the second quarter’s 1.2 per cent gain.