Japan Revises GDP Contraction to 2.3% for July-September, Indicating Economic Challenges
Japan's Cabinet Office has revised the country's GDP contraction for the July-September period to an annualized 2.3%, up from the initially reported 1.8%. This marks the fastest economic contraction since the third quarter of 2023. The revision reflects a deeper economic downturn than economists had forecasted, with a median expectation of a 2.0% contraction. On a quarter-on-quarter basis, the GDP contracted by 0.6%, surpassing the initial estimate of 0.4%. The revised figures show that private consumption, which constitutes over half of the economy, increased by 0.2%, slightly higher than the preliminary reading of 0.1%. However, capital expenditure, a key indicator of private demand, fell by 0.2%, a significant drop from the initial estimate of a 1.0% rise. External demand, measured by exports minus imports, remained unchanged, while domestic demand contributed to a larger drag on growth than initially reported. 
