Japan’s economy shrank more than initially thought in the third quarter, revised figures showed on Monday. The economy shrank an annualized 1.9 percent in the July-September quarter, revised figures showed, worse than expectations for a 0.5 percent contraction in a Reuters poll and down from an initial 1.6 percent contraction recorded in November.
On a quarter-on-quarter basis, the economy contracted 0.5 percent, compared with an initial 0.4 percent contraction. Japan’s economy tipped into a recession during the third quarter as the economy continued to struggle with the impact of a consumption tax hike to 8 percent from 5 percent in April.
The reading led Prime Minister Shinzo Abe to delay a second tax hike, initially scheduled for October 2015, by 18 months and to call snap elections as he seeks a fresh mandate for Abenomics – a series of monetary and fiscal stimulus and and long-term structural reforms unveiled last year to kickstart the Japanese economy.
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