Japan records fastest annualized quarterly shrinkage in 2 years

Posted on November 24, 2023   |  

Japan's economy faced its most significant contraction in 2 years from July to September due to a rise in domestic prices, leading to reduced consumer spending, coupled with a decline in international sales.

This marks the first time in 4 straight quarters that Japan's economy experienced a decline, highlighting the persistent uncertainty since the onset of the COVID-19 pandemic in 2020.

During Q3, the country's overall economic output fell by 2.1%, a substantial decrease compared to the 4.8% growth in the preceding 3 months.

The cost of living in Japan grew by 5.1% during this period, intensifying financial pressures on individuals and businesses.

Japan's overall economic activity also contracted by 0.5% from July to September compared to the previous quarter.

Factors contributing to the economic slowdown include reduced business spending on items like equipment and decreased consumer spending influenced by both local and global circumstances.