• July 16, 2024

Natural Calamities Affect Economic Growth Of Japan’s GDP

The economy of Japan shrank in the third quarter due to disrupted exports and natural disasters strike on spending. Preliminary figures showed that the economy compressed by 1.2% amid July and September.

A devastating typhoon and earthquake were among the adversities to hit Japan in the present year and created the larger than imagined contraction. The drop-down also came since the U.S. and China trade fight, whose impact hurt growth and global trade. Economists polled by Reuters had predicted a 1% reduction for the 3 Months to September. Exports also fell by 1.8% from the past quarter, which is the fastest slowdown in more than 3 Years, Reuters stated. Japan was hit by many natural calamities in summer, counting one of Japan’s worst flood disasters in decades, a deadly typhoon and an earthquake. The disasters knocked on domestic spending and disturbed factories. However, increasing trade pressures and protectionism could be influential on future growth. The U.S.-China trade spat could strike Japan hard mainly since its important position in the global supply chain.

Speaking of the trade war between the U.S. and China, recently, it was stated that one of the Chinese senior officers is going to the U.S. for trying and diffusing Trump’s trade war. Trade relations between the U.S. and China seem to be dissolving a little before an informal meeting involving President Donald Trump and his equivalent Xi Jinping. Trump and Xi are anticipated to conduct an informal meeting during the 2018 G20 Buenos Aires Summit, Argentina at the end of this month. Senior executives from both countries appear to be preparing for a series of preparatory meetings. Most lately, the South China Morning Post stated that Liu He—Chinese Vice-Premier—is planned to fly to Washington, D.C. in advance the Buenos Aires meeting, with the goal of meeting senior officers in the Trump administration.

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