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Tokyo (AP) —The Japanese economy shrank at an annual rate of 3.6% from July to September, according to a revised estimate released Wednesday.
According to the government, growth forecasts for the previous quarter are down from previous reports of a 3.0% contraction, reflecting weak consumer spending and trade.
Every quarter, the economy, the indicator used by most economies, shrank by 0.9%, but earlier estimates were down by 0.8%.
The world’s third-largest economy is in recession and struggling to recover from the effects of the coronavirus infection wave.
The latest outbreaks that occurred at the end of summer have been declining so far, and the number of cases is declining sharply. However, it usually hit during the busy summer travel season and there were demands on restaurants, hotels and other service sector industries that hurt limited business activities and travel.
The data showed lower levels of private inventories, weaker government and corporate investment, and weaker personal consumption than previously reported. It also showed a 0.4% decrease in wages, rather than a 0.1% increase as previously reported.
The Japanese Cabinet has approved a record $ 56 trillion, or $ 490 billion, stimulus to save the economy from the downturn caused by the coronavirus pandemic, including cash distribution and assistance to sick companies. bottom. Parliamentary approval of the plan is expected this month.
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The Japanese economy will shrink 3.6% in the third quarter due to weak spending and trade. WGN Radio 720
Source link The Japanese economy will shrink 3.6% in the third quarter due to weak spending and trade. WGN Radio 720