Japan Economy Contracted More-Than-Forecasted In Third Quarter
Japanese economy recorded a more-than-forecasted shrank during the third quarter's GDP reading, while the nation's current account reading exceeded analysts' expectations to underscoring the risk of a recession, where exports and domestic demand rebounded.
Japanese economy released its gross domestic product reading concerning the third quarter of the year, where the nation's economy recorded -0.9% in third quarter, compared with the previous reading of -0.9% in the second quarter, while analysts' expectations were -0.8%.
The Final Annualized gross domestic product reading recorded -3.5% during the third quarter, compared with a previous reading of -3.5%, while analysts' expectations were -3.3%.
Meanwhile, today's reading will add to signs the world's third largest economy will enter into its third recession period in four years during this quarter as exports fell for a fifth month in October, while expectations indicated that Japan will contract again this quarter.
From another side, Japanese current account inclined more-than-expected during the third quarter of the year exports and domestic demand began to rebound but still in low levels, while Japanese companies may stop increasing investments during the current environment.
Japanese economy released its current account total reading for October, where the reading inclined to 376.9 billion, compared with a previous reading of 503.6 billion and analysts' expectations of 230.9 billion.
Japan's Adjusted Current Account inclined also during the month of October to 414.1 billion after recording 142.0 billion during the previous reading, while expectations led to 247.0 billion.
Meanwhile, Trade Balance in Japan concerning the month of October came with -450.3 billion, compared with the previous reading of 471.3 billion, while analysts' expectations were -450.0 billion.
Finally, it's expected from monetary policy makers at the Bank of Japan to cooperate with Japanese government to find a new measure to support the nation's economy and take the necessary stimulus plans in order to avoid the expected recession period during the current year.