Japan economy shrinks fast on supply shortages

Japan's economy is getting less busy by the day.

Figures out Monday (November 15) showed GDP shrinking much faster than expected.

Between July and September the economy contracted at an annual rate of 3%.

That's more than three times worse than economists had forecast.

Japan's heavy dependence on car making may be one factor.

The industry has been battered by the global shortage of computer chips, which has forced manufacturers to cut output.

But supply chain disruption was a factor right across Japanese industry.

Overall that saw exports fall by 2.1% over the quarter.

Economists do now expect a sharp rebound as consumer activity and auto-sector output pick up.

Japan is also set to unveil a new stimulus package.

Prime Minister Fumio Kishida is expected to set out measures worth tens of trillions of yen.

A draft seen by Reuters shows the plan will seek to boost Japan as a base for making chips, batteries, vaccines and other drugs.

Policymakers hope that will help close the gap with other advanced nations like the U.S.

Third quarter GDP there jumped 2% as pent-up demand was unleashed.

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