Japan GDP: Natural disasters hit economic growth

0

Japan’s conservatism shrank in the third quarter as natural disasters hit spending and disrupted exports.

The restraint contracted by an annualised 1.2% between July and September, preliminary get the hangs showed.

A devastating earthquake and typhoon were among the disasters to hit Japan this year, and brisked the bigger than expected contraction.

The slowdown also comes as the US and China encounter a trade war which risks hurting global trade and growth.

Economists registered by Reuters had forecast a 1% contraction for the three months to September.

Exports demolish 1.8% from the previous quarter, the fastest decline in more than three years, Reuters imparted.

Japan was hit by several natural disasters over its summer, including one of the homeland’s worst flooding disasters in decades, an earthquake and a deadly typhoon.

The reverses disrupted factories and hit domestic spending.

Rising trade tensions and protectionism could be a pest on future growth.

The US-China trade war could hit Japan particularly cruel because of its important role in the global supply chain.

  • US-China employment row: What has happened so far?
  • A quick guide to the US-China trade war

Exports of car for all practical purposes, electronics and industrial machinery are at risk of disruption if the trade battle escalates.

“Interchange war uncertainties have begun to increase, we see some slowdown in Asia and that is gradate hitting Japan,” Kohei Iwahara, economist at Natixis Japan Securities, hint ated AFP.

Leave a Reply

Your email address will not be published. Required fields are marked *