Asia’s second-largest economy shrank 0.3% after three consecutive quarters of growth.
Japan’s economy unexpectedly contracted in the third quarter due to a drop in private consumption and rising import costs.
Official data showed Asia’s second-largest economy shrank 0.3 percent between July and September, after three consecutive quarters of growth.
The worse-than-expected performance translates into an annual contraction of 1.2 percent.
Private consumption, which accounts for more than half of Japan’s $5 trillion economy, rose 0.3 percent, much lower than the previous quarter’s 1.2 percent gain.
Japan’s Cabinet Office said while corporate investment increased, private housing investment fell. Meanwhile, rising import costs offset a 1.9% increase in exports, according to official data.
Besides the slowing global economy and headwinds, including the war in Ukraine, Japan has struggled with a falling yen, which has exacerbated rising cost-of-living pressures on households and businesses. Karma.
The Japanese currency fell to a 32-year low in October, touching 151 yen against the US dollar, although it has since recovered some of its losses.
Last month, Japanese Prime Minister Fumio Kishida announced a $260 billion stimulus package to support the economy.
“We want to protect people’s livelihoods, jobs and businesses, and strengthen our economy in the future,” Kishida told reporters at the time.
