The Japanese economy shrank more than expected in the third quarter, partly because of hurdles it faced during the Tokyo Olympic Games. The world's third largest economy saw its G-D-P shrink 3% year-on-year in the three months to September.

Consumer spending slumped as authorities put large parts of the country under a state of emergency, to keep COVID-19 infections at bay. As a result, Japan missed out on a bump in activity during the Olympics, with domestic and international spectators locked out of the two-week event.

The country also took a hit from supply chain bottlenecks that have choked other major economies. Japanese carmakers and electronics manufacturers were forced to cut production due to a shortage of semiconductor chips. Exports fell more than two percent during the quarter. Professor Seijiro Takeshita from the University of Shizuoka joined the show to give his take on Japan’s economic prospects.

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