Economists See Annual 0.8 Pct Drop in Japan July-Sept. GDP

Economy

Tokyo, Nov. 2 (Jiji Press)--Japan's real gross domestic product in July-September is believed to have contracted 0.2 pct from the previous quarter, or at an annual rate of 0.8 pct, after posting positive growth in April-June, an average estimate by 12 private think tanks shows.

The decline reflects sluggish personal consumption amid a surge in new coronavirus infection cases, as well as weak exports due to supply chain constraints, analysts said.

The Cabinet Office is set to announce preliminary GDP data for July-September on Nov. 15.

Personal spending, the main pillar of domestic demand, is estimated to have dropped 0.5 pct on average, dampened by the government's declaration of a fourth COVID-19 state of emergency for Tokyo and some other areas following the spread of the coronavirus delta variant.

"Spending on services was hit particularly hard as more people refrained from going out," an economist at Dai-ichi Life Research Institute Inc. said.

[Copyright The Jiji Press, Ltd.]

Jiji Press