Japan’s Economy Contracts in Third Quarter, Trade War Clouds Rebound Outlook

Japan’s Economy Contracts in Third Quarter, Trade War Clouds Rebound Outlook
A man works at a container area at a port in Tokyo, Japan on Sept. 8, 2015. Toru Hanai/File Photo/Reuters
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TOKYO—Japan’s economy shrank more than expected in the third quarter, hit by natural disasters and a decline in exports, a worrying sign that trade protectionism is starting to take its toll on overseas demand.

The contraction in the world’s third-largest economy adds to growing signs of weakness globally, with China and Europe losing momentum. Data released later in the day showed Germany’s economy also contracted in the third quarter on weak foreign trade.