Japan GDP growth collapses amid sales tax shock

Japan's economy suffered its worst contraction since 2011 in the second quarter as the threat of higher tax payments put consumers off major purchases.

Gross domestic product fell by an annualized 6.8 percent during the three months ended June 30. It was, however, better than economists' predictions of over 7 percent, according to CNNMoney.

Japan's GDP dropped as business and housing investment declined. Japan's economy last suffered a hit of this magnitude after the 2011 tsunami and nuclear disaster.

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