The fall in Japanese GDP in the third quarter were worse than expected

Moscow. November 16. Japan’s GDP in the third quarter of 2015 decreased by the reduction of investment companies, the downturn in the economy is observed two quarters in a row that meets the definition of a recession.

According to preliminary official data, the Japanese economy in July-September decreased by 0.8% in recalculation on annual rates. Analysts surveyed by Bloomberg, forecasted a decline in GDP by 0.2%.

The contraction of Japanese GDP relative to April-June amounted to 0.2% when economists expected a decline of 0.1%.

Assessment of the decline in GDP in the previous quarter was revised from 1.2% to 0.7% in annual terms and 0.3% at 0.2% in quarterly.

Investment companies decreased by 1.3% instead of the expected decrease by 0.5%.

Meanwhile, consumer spending last quarter rose by 0.5%, which was better than market expectations (of 0.4%).

For comparison: in the second quarter of this year, consumer expenses decreased 0.6% investment companies – 1.2%.

“The GDP report for the last quarter added to concerns that the weakness in the Japanese economy may persist for a long time, – said economist at Itochu Group Atsusi Takeda. – The main problem was the decline in investment”.

Weak statistical data on the Japanese economy can be an argument in favor of stimulus measures by the Bank of Japan. A regular meeting of the Central Bank will be held on November 18-19.