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Japan’s economy shrinks more than expected as supply shortages hit

Mount Equity Group Tokyo, Japan > News > Markets > Japan’s economy shrinks more than expected as supply shortages hit

Pedestrians wearing protective masks, following the coronavirus disease (COVID-19) outbreak, make their way during commuting hour at a business district in Tokyo, Japan, January 7, 2021. REUTERS/Kim Kyung-Hoon/File Photo

  • Q3 GDP annualised -3.0% vs f’cast -0.8%
  • Declines in exports, capex, consumption hurt economy in Q3
  • Economic outlook in Q4 likely brighter but growth seen slow
  • Sluggish consumption, risks to global economy cloud outlook

TOKYO, Nov 15 (Reuters) – Japan’s economy contracted much faster than expected in the third quarter as global supply disruptions hit exports and business spending plans and fresh COVID-19 cases soured the consumer mood.

While many analysts expect the world’s third-largest economy to rebound in the current quarter as virus curbs ease, worsening global production bottlenecks pose increasing risks to export-reliant Japan.

Also read: BOJ’s Kuroda projects inflation approaching 1% mid-next year

“The contraction…

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