Japan’s GDP Shrinks to 6.8%

Japan’s economy contracted sharply in the second quarter, data on Wednesday showed, as a nationwide consumption tax that took effect in April dragged on its recovery.

Gross domestic product (GDP) shrank an annualized 6.8 percent in the three months ending in June, compared with a Reuters forecast for a 7.1 percent contraction and after growing 6.7 percent in the first quarter.

On a quarterly basis, the economy shrank 1.7 percent, versus expectations for a 1.8 percent contraction and following a 1.6 percent expansion in the first three months of the year.


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