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Faltering capital spending saps Japan's economic growth

Problem comes on top of festering issues such as country's dwindling population

YOHEI MATSUO, Nikkei staff writer | Japan

TOKYO -- Many Japanese companies have been shying away from investing in domestic plants and equipment as they fret about potential overcapacity locally and turn overseas for expansion, keeping the country's capital spending in the doldrums and dragging on growth in the world's No. 3 economy.

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