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Japan's economy shrinks more than expected

Tokyo - Japan's economy shrank more quickly than expected in the third quarter, according to statistics released on Monday.

The gross domestic product (GDP) of the world's third-largest economy fell at an annualized rate of 1.9% after an increase in the sales tax.

An earlier projection had put the drop at 1.6% after GDP fell in the previous quarter.

Corporate investment fell 0.4% from the previous quarter, compared with a predicted drop of just 0.2%, while consumption, which makes up 60% of output, was up just 0.4%.

Prime Minister Shinzo Abe has pursued aggressive monetary easing under a set of "Abenomics" policies to stimulate growth and ward off persistent deflation.

He said last month that he would put off a planned sales tax hike originally scheduled for next year until April 2017, after government figures showed Japan fell into recession for the third time in four years.

He called an early election for December 14, which he is predicted to win despite the poor economic situation and criticism of his policies by the opposition, which is seen as splintered and lacking a coherent leadership.

ALSO READ: Shock Japan recession a blow to global economy

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