Japan Q3 Economic Growth Rate -0.8%... Negative Again After Two Quarters (Update)

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Japan's economic growth rate for the third quarter has turned negative again after just one quarter.

On the 15th, Japan's Cabinet Office announced that the real Gross Domestic Product (GDP) for the third quarter (July to September) decreased by 0.8% (preliminary figure) compared to the previous quarter, and declined by 3% on an annualized basis.

The growth rate had turned positive from -1.1% in the first quarter to 0.4% in the second quarter, but has now reverted to negative.

With the spread of COVID-19 reaching its peak this summer and states of emergency declared across the country, personal consumption decreased, which appears to be the main cause of the worsening growth rate.

Looking at the detailed items, private final consumption expenditure decreased by 1.1%. Private capital investment also fell by 3.8%.

By contribution to each item, domestic demand is analyzed to have pulled down the growth rate by 0.9 percentage points.

The nominal GDP growth rate for the third quarter recorded -0.6%.

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