Gross domestic product shrank 0.1 per cent in the three months to September 30 from the previous quarter, following a quarterly decline of 0.9 per cent in the second quarter. The third-quarter decline was worse than economists' forecast for flat growth or a mild upturn.
Kaoru Yosano, economy minister, said turmoil in the markets and slowdowns in other major global economies meant further weakness lay ahead for the world's second-largest economy.
“Economic conditions could worsen as the US and European financial crisis deepens, worries of [an] economic downturn heighten and stock and foreign exchange markets make big swings,” Mr Yosano said.
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