Japan’s economy shrinks most in 4 years as global risks hit business spending.The capital expenditure component of GDP fell a sharp 2.8 percent from the second quarter, worse than the expected 1.6 percent decline and the preliminary 0.2 percent drop.Japan’s economy shrinks most in 4 years as global risks hit business spending The Japanese economy contracted the most in over four years in the third quarter as companies slashed spending, threatening to chill the investment outlook in 2019 as the export-reliant nation grapples with slowing global growth and trade frictions.The slump in the world’s third-biggest economy adds to signs elsewhere in Asia and Europe of weakening momentum, with recent data in China and Australia showing a slowdown in growth and stoking concerns about the wider impact of the Sino-U.S trade war.Japan’s gross domestic product shrank at an annualised rate of 2.5 percent in the July-September quarter – the worst downturn since the second quarter of 2014 – from 2.8 percent growth in the second quarter, revised data from the Cabinet Office showed.