Japan’s Economy Shrinks More Than Expected as Supply Shortages Hit

Japan’s Economy Shrinks More Than Expected as Supply Shortages Hit
An industrial port is pictured in Tokyo, Japan on May 23, 2019. Kim Kyung-Hoon/Reuters
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TOKYO—Japan’s economy contracted much faster than expected in the third quarter as global supply disruptions hit exports and business spending while new COVID-19 cases soured the consumer mood, undermining efforts to stoke a virtuous growth cycle.

While many analysts expect the world’s third-largest economy to rebound this quarter as virus curbs ease, worsening global production bottlenecks pose increasing risks to export-reliant Japan.