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Japan’s economy unexpectedly contracted again in the October-December period, provisional government data showed Thursday, as high inflation crimped domestic demand and private consumption in the world’s third-largest economy.
Provisional gross domestic product contracted 0.4% in the fourth quarter compared with a year ago, after contracting 2.9% in the July-September period. This was way below the median estimate for 1.4% growth in a Reuters poll among economists. The GDP deflator in the fourth quarter stood at 3.8% on an annualized basis.
The world’s third-largest economy also contracted 0.1% in the fourth quarter from the previous quarter, after contracting 0.4% in the third quarter from the second. This was also weaker than expectations for 0.3% expansion.
Private consumption declined 0.2% in the fourth quarter from the previous quarter, in contrast to the median estimate for a 0.1% expansion.
This is a developing story. Please check back for more updates.
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