Japan’s Economy Shrinks, Backing BOJ and Govt’s Stimulus Case
- Return to contraction underscores fragility of recovery
- Weak yen, inflation and uncertainties abroad weigh on outlook
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Japan’s economy slipped back into reverse over the summer, underscoring the fragility of the country’s recovery and backing the case for continued support from the Bank of Japan and the government.
Gross domestic product shrank at an annualized pace of 2.1% in the third quarter, largely on the back of falling business spending, a lack of recovery in consumer spending, and higher imports, the Cabinet Office reported Wednesday.