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Japan economy shrinks as China dispute takes toll

By The Associated Press

This article was published November 12, 2012 at 11:10 a.m.

— Japan’s economy contracted in the latest quarter, signaling that like Europe it may already be in recession, further weighing down world growth.

On an annualized basis, the world’s No. 3 economy shrank 3.5 percent in the July-September quarter, the government reported Monday.

It was in line with gloomy forecasts after Japan’s territorial dispute with China hammered exports that were already weakened by feeble global demand.

Read tomorrow's Arkansas Democrat-Gazette for full details.

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