TOKYO (Reuters) - Japanese Economy Minister Yasutoshi Nishimura said on Thursday that worsening relations with South Korea had a "big impact" on exports in the July-September quarter, which fell 0.7% from the previous quarter.

Declines in in-bound tourists from South Korea and shipment of goods there were a drag on Japan's overall exports, along with some impact from a prolonged trade war between the United States and China, Nishimura said after the government announced preliminary gross domestic product for last quarter.

(Reporting by Tetsushi Kajimoto and Daniel Leussink; Editing by Chang-Ran Kim)