Japan's Economy Continues to Contract

Israel National News:  The Japanese economy contracted for a third quarter, with GDP down by 1.3% at an annual rate between April and June. The contraction was much smaller than expected; analysts had predicted a rate of 2.6%.

Financial difficulties were expected following a March earthquake and tsunami that killed thousands of people in Japan's north and did severe damage to manufacturing in the area. The decrease in exports following the disaster was cited as the primary cause for the subsequent contraction.