The third-quarter contraction that tipped Japan into recession may not be as sharp as first thought, with economists revising gross domestic product forecasts as the Lower House election campaign started Tuesday.
The economy probably shrank an annualized 0.6 percent in the three months through September, not the 1.6 percent initially projected by the government, according to a survey of 12 economists Monday.
A surprise jump in capital spending led by metals producers and smartphone-part makers prompted the revision, reducing the bad-news impact of the initial report. Abe is also contending with a downgrade of Japan's credit rating by Moody's Investors Service, which cited uncertainty over his growth strategy.