Tokyo: Japan's economy shrank at an annualized rate of 1.8 percent in the July-September quarter, primarily driven by weak exports, government data revealed on Monday. This marks the first contraction of the gross domestic product (GDP) in six quarters, following a revised 2.2 percent rise in the April-June period, according to preliminary data released by the Cabinet Office.
According to Kuwait News Agency, on a quarterly basis, the world's third-largest economy declined 0.4 percent in the three months ending September 30 compared to the April-June period. Personal consumption, which comprises over half of Japan's GDP, increased by 0.1 percent from the previous quarter, supported by strong demand for beverages during summer.
Corporate capital spending, another significant aspect of domestic demand, also experienced growth, rising by 1.0 percent. However, exports saw a decline of 1.2 percent from the previous quarter, impacted by US President Donald Trump's higher tariffs. GDP represents the total value of goods and services produced within a country.