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Data released by the Japanese Cabinet Office on Monday showed that the revised annual rate of gross domestic product (GDP) shrank by 2.5% from July to September, while the initial value fell by 1.2%. The revised shrinkage was greater than the median of Reuters analysts'forecasts, which fell 1.9%.
This was the worst contraction since the second quarter of 2014, when the economy was hit by the April consumption tax hike. Japan's GDP in the second quarter was revised to grow by 2.8%.
Economists expect Japan's economy to rebound in the current quarter, pointing out that the third quarter's decline was partly due to natural disasters that disrupted supply chains and factory output.


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