Japan’s economic growth for the third quarter was weaker than previously forecast, national data from the Cabinet Office showed on Monday.
Gross domestic product (GDP) for the third quarter shrank 0.6% from the previous quarter, lower than the preliminary forecast of a 0.3% decline and economists’ expectations of a 0.5% fall. For the second quarter, GDP grew by 0.7%.
Private investments fell by 2.8% from the previous quarter, worse than the 0.2% contraction in the preliminary estimate.
Domestic demand declined by 0.6% while private demand shrank by 0.7%, and private consumption which accounts roughly 60% of GDP, fell by 0.2%.
On a year-on-year basis, GDP shrank by 2.5%, compared to the earlier estimate of a 1.2% decline due to a fall in capital expenditure. For the second quarter, GDP grew by a revised 2.8% expansion.
Economists expect the country to rebound for the last quarter of the year, as the third quarter’s performance was met with natural disasters which affected businesses.
Japan was hit by a slew of natural disasters from July to September, such as an earthquake in the north which affected supply lines, flooding in the western parts of the country due to heavy rainfall, and a typhoon.
The momentary shutting down of Kansai International Airport due to the typhoon had affected business and cargo shipments.