Japan GDP: natural disasters strike economic growth

The Japanese economy contracted in the third quarter, as a result of natural disasters that affected spending and disrupted exports.

The economy contracted by 1.2% annualized between July and September, according to preliminary figures.

A devastating earthquake and typhoon were among the disasters that struck Japan this year and resulted in a larger-than-expected contraction.

The slowdown also comes as the United States and China wage a trade war that threatens global trade and growth.

Economists polled by Reuters forecast a contraction of 1% for the quarter ending in September.

Exports fell 1.8% from the previous quarter, the fastest drop in more than three years, Reuters said.

During the summer, Japan has been hit by several natural disasters, including one of the worst floods in the country in decades, an earthquake and a deadly typhoon.

Disasters have disrupted factories and weighed on domestic spending.

Rising trade tensions and protectionism could weigh on future growth.

The trade war between the United States and China could particularly hit Japan because of its important role in the global supply chain.

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Exports of auto parts, electronics and industrial machinery may be disrupted if the commercial battle intensifies.

"The uncertainties of the trade war have begun to increase, we are seeing some slowdown in Asia and this is gradually striking Japan," said AFP Kohei Iwahara, an economist at Natixis Japan Securities.