Japan economy weaker than estimated in second quarter

Japan's economy contracted more severely in the second quarter than was initially estimated, revised government data has shown.

The economy shrank at an annual rate of 2.1% during the period, compared with the 1.3% drop reported previously.

The decline came as companies cut back spending due to concerns about a slowing global economy and a rising yen.

Seijiro Takeshita from Mizuho International told the BBC that the economy was hit hard by the earthquake and tsunami early this year, resulting in many factories suspending or curbing production.

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