Japan economy shrinks in Q3 as natural disasters hit
Published on: Thursday, November 15, 2018
TOKYO: Japan's economy shrank in the three months to September, official data showed Wednesday, after a string of natural disasters hit consumer spending and exports, and China's slowing economy cast a shadow.Gross domestic product for the July-September period contracted 0.3 per cent from the previous quarter, reversing growth of 0.8 per cent in the April-June period, according to the government's Cabinet Office.A number of natural disasters dampened personal consumption, company investment and exports, said Katsunori Kitakura, lead strategist at Sumitomo Mitsui Trust Asset Management.
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"Natural disasters forced consumers to stay indoors and halted factory operations, which led to a slowdown in production and investment activities," he said in a commentary ahead of the data release.Japan was hit by several natural disasters this summer, including massive flooding in western regions due to torrential rains, a typhoon that inundated a major international airport, and an earthquake in the north that disrupted supply lines.The temporary closure of the Kansai International Airport led to a fall in tourism and overseas shipments, Kitakura said.Exports of goods and services were down 1.8 per cent from the April-June quarter, with private consumption slumping 0.1 per cent and corporate investment in plants and equipment off 0.2 per cent.
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But Kitakura anticipated a rebound in the last quarter of the year thanks to a broadly solid global economy.Stay up-to-date by following Daily Express’s Telegram channel.
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Kohei Iwahara, economist at Natixis Japan Securities, noted that one of the major drivers for the Japanese economy has been external factors like exports. – AFP
