Japanese economy contracts

JAPAN’S economy shrank 0.4% in the three months to September, official data showed yesterday, as new Prime Minister Sanae Takaichi’s government prepares a major stimulus package.

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The quarter-on-quarter reading for gross domestic product beat market expectations of minus 0.6% but was the first contraction since the first quarter of 2024.

The preliminary, seasonally adjusted figure follows growth of 0.6 percent - revised upwards from an earlier reading of plus 0.5% - for the April to June quarter.

Takaichi became Japan's first woman prime minister in October and has tasked her government with putting together a new stimulus package.

Finance Minister Satsuki Katayama said at the weekend that the value would be “well above” 17 trillion yen (about R1.8 billion), local media reported.

The cabinet was expected to approve the package on Friday, the reports said.