LOC09:24
06:24 GMT
TOKYO, Nov 14 (KUNA) -- Japan's economy shrank at an annualized pace of 1.2 percent in the July-September period, the first decline in two quarters as natural disasters hit personal consumption, corporate investment and exports, the government said Wednesday.
The contraction followed a revised 1.1 percent contraction in the first quarter and a 3.0 percent expansion in the second quarter, according to preliminary data released by the Cabinet Office.
On a quarterly basis, the world's third-biggest economy's gross domestic product (GDP) declined 0.3 percent in the three months ended September 30 from the April-June period.
Personal spending, which accounts for about 60 percent of Japan's GDP, fell 0.1 percent, as a string of natural disasters, including torrential rains that killed more than 200 people in the western region, discouraged consumers from spending money at stores, restaurants and tourist spots.
Corporate capital spending, another key pillar of domestic demand, slid 0.2 percent. Exports also declined 1.8 percent due to weak demand for automobiles as well as the impact of an earthquake and typhoons that disrupted supply chains and shut down a major international airport which serves as a logistics hub.
"There is no change in the government's view that the Japanese economy is moderately recovering," Economy and Fiscal Policy Minister Toshimitsu Motegi told a press conference after the Cabinet released GDP data despite contraction. "Japan's economy is expected to recover, chiefly driven by domestic demand. But we should be aware of the impact of overseas economic uncertainties, fluctuations in financial markets and trade frictions," Motegi said.
GDP is the total value of goods and services produced domestically. (end).
mk.tg