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Japanese Economy Shrinks in 2nd Quarter

Written: 2012-11-12 13:24:52Updated: 2012-11-12 14:53:13

Japanese Economy Shrinks in 2nd Quarter

The Japanese economy has shrunk after posting positive growth for three straight quarters.

Japan’s Cabinet Office said that Japan’s real gross domestic production dropped zero-point-nine percent quarter-on-quarter in the July-to-September period.

The Cabinet Office attributed the economic contraction to sluggish domestic consumption and a decrease in exports, explaining that individual consumption fell zero-point-five percent, exports dropped five percent and investment in facilities declined three-point-two percent.

The office lowered its outlook for Japan’s economy on November sixth, declaring that the Japanese economy entered a downward state for the first time in 16 months since May 2011.

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