Japan economy shrinks worse-than-forecast 2.5% on capex fall

Drop in spending: Newly-manufactured cars await export at a port in Yokohama. Japan’s growth is expected to recover in the current quarter and continue into next year. — Reuters

TOKYO: Japan’s economy contracted more than initially projected in the third quarter, driven by the biggest drop in business spending in nine years amid a series of natural disasters.

Growth is expected to recover in the current quarter and continue into next year, but trade tensions and a slowdown in China are major risks.