Japan’s Q3 GDP contraction worsens on weak capital expenditures

Japan’s Q3 GDP contraction worsens on weak capital expenditures

Yes, revised data for Japan’s July to September gross domestic product quarter released on Monday showed the economy contracted faster than initially reported in November. Third quarter GDP fell 0.6% quarteron quarter or 2.3% annualized steeper than analysts forecast of 2.0% decline. Private consumption which accounts for more than half of the economy was revised up to 0.2% 2% from 0.1% in the initial report. Meanwhile, capital’s expenditure fell 0.2% from the previous quarter, down from the initially estimated 1.0% growth. Prime Minister Sai Takai builds a stimulus package worth 17.7 trillion yen or 114 billion US which includes price relief steps such as utility subsidies and tax cuts as well as waste support measures aimed largely at helping smaller firms. Analysts say the data could give Takichi rationale to continue fiscal support in the future. The new figure will also be factored into Bank of Japan’s policy meeting later next week, though experts say they are unlikely to derail its gradual path of interest rate hikes.

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https://www.cgtn.com/video

Japan’s economy contracted more than expected in Q3, marking its sharpest decline in a year. What’s causing the downturn, and how is Tokyo responding? CGTN correspondent Terrence Terashima explains it.

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