Japan's GDP faces contraction over island row with China

Japan's territorial spat with China might cause the Japanese economy to contract this quarter and hasten a current-account slide as exports decline and Chinese tourism to Japan drops off, according to a JPMorgan report.

The dispute would knock 0.8 percentage point off Japan's gross domestic product in the October-December period, economists Masaaki Kanno and Masamichi Adachi said.

They estimate fourth-quarter GDP will contract 0.8 per cent from the previous quarter, compared with a previous estimate of no growth.

via Business feed http://www.scmp.com/business/economy/article/1056087/japans-gdp-faces-contraction-over-island-row-china