Japan's economy shrank by 2.1% in Q3 due to slow consumption and exports, complicating the Bank of Japan's efforts to taper monetary stimulus amid rising inflation.
2
Wages drop continuously
Household spending stagnated, and inflation-adjusted real wages dropped 2.4% in September, marking the 18th consecutive month of declines.
3
Stagnant consumer spending
Consumer spending remained flat in Q3 after a 0.9% dip in the April-June quarter. Capital expenditure declined by 0.6%, following a 1% drop in the previous quarter.
4
Domestic demand weakens
The disappointing results in the third quarter reveal the weakness in domestic demand as the export recovery wanes.
5
Households feelingthe pinch
Despite significant profits for major exporters due to the devalued yen, household wages haven't kept pace with the steady rise in inflation, leaving households feeling the pinch.