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Japan's economy grew 0.1% in third quarter of 2019: government

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Japanese growth slowed significantly in the third quarter of the year, according to government data released on Thursday, sparking concerns for the health of the world's third-biggest economy.

[TOKYO] Japanese growth slowed significantly in the third quarter of the year, according to government data released on Thursday, sparking concerns for the health of the world's third-biggest economy.

The economy expanded 0.1 per cent between July and September, a slowdown from the 0.4 per cent seen in the previous period and much weaker than economists had forecast.

A drop in exports amid ongoing global trade tensions outweighed growth in domestic demand, the government said.

Analysts had expected a stronger pace of growth in the third quarter as consumers rushed to make purchases before a controversial consumption tax hike from eight per cent to 10 per cent on October 1.

Japan's household spending surged 9.5 per cent year-on-year in September, according to official data released last week, as consumers rushed to complete purchases of furniture and other big-ticket items ahead of the rate rise.

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Some analysts expect a backlash in the fourth quarter as consumption slows after the tax hike.

AFP

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