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Japan’s Shrinking Economy Fuels Expectation for Kishida Stimulus

  • Bigger-than-expected drop adds to concerns over lost momentum
  • GDP slips 3% for fifth contraction in last eight quarters
Corelex Shinei Toilet Paper Factory As Japan Announces Its Revised GDP Figures
Photographer: Toru Hanai/Bloomberg
Updated on

Japan’s economy shrank more than expected last quarter as shoppers stayed home and factories pared production, ramping up expectations for Prime Minister Fumio Kishida’s stimulus package. 

Gross domestic product contracted at an annualized pace of 3% in the three months through September from the previous quarter, the Cabinet Office reported Monday. Economists had forecast a 0.7% decline.