Analysts Expect Jul. - Sep. Gdp Contraction
The Japanese government is due to announce GDP figures later this month for the summer, and many analysts are expecting a contraction for the first time in two quarters.
Private-sector think tanks and financial institutions have released their GDP estimates for the July-to-September period. The actual numbers are due out on November 15.
Ten out of 12 firms are forecasting an economic contraction, with annualized projections ranging from minus 2.2 percent to minus 0.2 percent.
They say the coronavirus's rapid spread dented demand for dining and travel.
Many believe consumer spending fell amid pandemic restrictions. The metric accounts for more than half of GDP.
Analysts also expect exports to have fallen for the first time in five quarters.
They point to sagging auto production due to the lack of semiconductors, as well as parts-supply disruptions caused by the spread of COVID-19 in Southeast Asia.
Meanwhile, the two firms that forecast an expansion gave subdued growth estimates, from an annualized 0.1 percent to 0.6 percent.