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Japan Q3 GDP seen to have shrunk

Staff Writer | November 5, 2018
Japan’s economy is projected to have shrunk in July-September due to a series of natural disasters, private think tanks said.
Japan oil import
Asia   Gross domestic product fell at an annual rate of 1.1 percent
Gross domestic product fell at an annual rate of 1.1 percent from the previous quarter in price-adjusted real terms, according to the average of the latest estimates by 13 think tanks.

Consumer sentiment worsened due to the natural disasters including heavy rains in western areas in July and a powerful earthquake in Hokkaido in September, they said.

The Japanese economy was “at a standstill” in the third quarter, an official of the Dai-ichi Life Research Institute said.

The Cabinet Office is scheduled to release official third-quarter GDP figures on Nov. 14.

Personal spending, which accounts for about 60 percent of the country’s GDP, was sluggish as many consumers refrained from going out, due to the natural disasters. Higher vegetable and gasoline prices also weighed on consumption.

But the employment and income situations continued improving, led by higher summer bonuses than a year before.