Economics
Japan, German Contractions Open Cracks in Global Economy
- Both countries hit by temporary factors, set to bounce back
- But trade tensions remain a big risk for the outlook into 2019
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The world economy took a body blow in the third quarter with Japan and Germany both contracting, although both are set to rebound.
One-off factors were largely to blame -- weather in Japan and cars in Germany. But the data from the third- and fourth-largest economies are a setback when the outlook for global growth is already fraying amid jittery financial markets and mounting trade wars.