Disasters Hit Economic Growth of Japan’s Natural Gross Domestic Product
Economic GrowthThe disasters disrupted factories and hit domestic spending…
Japan was hit by several natural disasters over its summer, including one of the country’s worst flooding disasters in decades, an earthquake and a deadly typhoon.
A devastating earthquake and typhoon were among the disasters to hit Japan this year, and prompted the bigger than expected contraction.
Japan’s economy shrank in the third quarter as natural disasters hit spending and disrupted exports.
The economy contracted by an annualised 1.2% between July and September, preliminary figures showed. Economists polled by Reuters had forecast a 1% contraction for the three months to September.
Exports fell 1.8% from the previous quarter, the fastest decline in more than three years, Reuters said.
Exports of car parts, electronics and industrial machinery are at risk of disruption if the trade battle escalates.
The slowdown also comes as the US and China fight a trade war which risks hurting global trade and growth.
The US-China trade war could hit Japan particularly hard because of its important role in the global supply chain.
Trade war uncertainties have begun to increase, we see some slowdown in Asia and that is gradually hitting Japan, Kohei Iwahara, economist at Natixis Japan Securities, told AFP (Association for Financial Professionals).
