Japan's economy shrinks more than expected as supply shortages hit

The economy shrank an annualised 3.0% in July-September after a revised 1.5% gain in the first quarter

Japan's economy contracted much faster than expected in the third quarter as global supply disruptions hit exports and business spending plans and fresh COVID-19 cases soured the consumer mood, Qazet.az reports citing Reuters.

While many analysts expect the world's third-largest economy to rebound in the current quarter as virus curbs ease, worsening global production bottlenecks pose increasing risks to export-reliant Japan.

"We expect the economy to stage a rebound this quarter but the pace of recovery will be slow as consumption did not get off to a good start even after COVID-19 curbs were eased late in September."

The economy shrank an annualised 3.0% in July-September after a revised 1.5% gain in the first quarter, preliminary gross domestic product (GDP) data showed on Monday, much worse than a median market forecast for a 0.8% contraction.

The weak GDP contrasts with more promising readings from other advanced nations such as the United States, where the economy expanded 2.0% in the third quarter on strong pent-up demand.