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Japan’s economy unexpectedly slows as capital spending slips

Japan’s economy faces fallout from the conflict in the Middle East, which has pushed up prices for fuel.

  • Japan's economy grew 1.1% annually in Q2 2023, slower than 1.9% in previous quarter
  • Capital spending declined 1.2% non-annually, steeper than estimated 1% drop
  • Weak consumption and rising costs challenge BOJ's rate hike timing

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