TOKYO: Japan's economy likely shrank at a slightly slower pace in the third quarter than the government initially estimated because a fall in capital spending by firms may have been less than measured in preliminary data, according to a Reuters poll.
But the overall picture of the world's third-largest economy remained severe, with analysts saying that it may have already slipped into a recession because of weak global demand for its top exports.
Gross domestic produce (GDP) probably shrank 0.8 percent in the July-September quarter from the previous period, which would translate into an annualized 3.3 percent contraction, a consensus forecast of 24 economists showed.
According to the government's preliminary estimate, the economy contracted 0.9 percent in the third quarter, or an annualised 3.5 percent decline.
The revised GDP, due to be released on Monday, will likely show capital spending dropped 2.8 percent against the much steeper 3.2 percent fall estimated in the early data.
Many analysts expect the economy to contract again in the fourth quarter, meeting the popular definition of a recession as a sluggish U.S. economy recovery and the euro zone's debt problems weigh on its exports.
"A possibility is high that the economy will contract two straight quarters in October-December," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.
"But the economy will likely return to growth next year along with a recovery in exports for emerging nations including China."
indiatimes.com
But the overall picture of the world's third-largest economy remained severe, with analysts saying that it may have already slipped into a recession because of weak global demand for its top exports.
Gross domestic produce (GDP) probably shrank 0.8 percent in the July-September quarter from the previous period, which would translate into an annualized 3.3 percent contraction, a consensus forecast of 24 economists showed.
According to the government's preliminary estimate, the economy contracted 0.9 percent in the third quarter, or an annualised 3.5 percent decline.
The revised GDP, due to be released on Monday, will likely show capital spending dropped 2.8 percent against the much steeper 3.2 percent fall estimated in the early data.
Many analysts expect the economy to contract again in the fourth quarter, meeting the popular definition of a recession as a sluggish U.S. economy recovery and the euro zone's debt problems weigh on its exports.
"A possibility is high that the economy will contract two straight quarters in October-December," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.
"But the economy will likely return to growth next year along with a recovery in exports for emerging nations including China."
indiatimes.com
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