TOKYO: Japan’s economy grew at a robust annual rate of 4.8% in the third quarter as stimulus spending and a rebound in exports appeared to bring the country firmly out of its worst recession in the postwar era.
Gross domestic product grew 1.2% in the July-to-September period from the previous three months, or at an annual pace of 4.8%, the government said on Monday. It was the second consecutive quarter of growth for Japan and offered more evidence of a widespread recovery from the global economic crisis.
Last week, the 16-country euro zone said its economy grew 0.4% in the three months to September, the first uptick in six quarters. The GDP in the US expanded at an annual rate of 3.5% in the quarter that ended in September, also partly propelled by stimulus programs.
The reading for Japan, an initial estimate that could yet be revised, beat a 2.9% median forecast of 20 economists surveyed by Bloomberg News. Still, the outlook for Japan’s economy remains unclear, with a new government indicating it will slow down stimulus spending just as the recovery starts to gain steam.
“We’re finally seeing a rebound in domestic demand, and a high rate of growth over all. It’s clear that the economy has bottomed out,” Koichi Haji, chief economist in Tokyo, said. “But much of the recovery has been thanks to government spending, so well most likely see growth slow going forward,” Haji said. “It’s too soon to say we’re out of the woods.”
Gross domestic product grew 1.2% in the July-to-September period from the previous three months, or at an annual pace of 4.8%, the government said on Monday. It was the second consecutive quarter of growth for Japan and offered more evidence of a widespread recovery from the global economic crisis.
Last week, the 16-country euro zone said its economy grew 0.4% in the three months to September, the first uptick in six quarters. The GDP in the US expanded at an annual rate of 3.5% in the quarter that ended in September, also partly propelled by stimulus programs.
The reading for Japan, an initial estimate that could yet be revised, beat a 2.9% median forecast of 20 economists surveyed by Bloomberg News. Still, the outlook for Japan’s economy remains unclear, with a new government indicating it will slow down stimulus spending just as the recovery starts to gain steam.
“We’re finally seeing a rebound in domestic demand, and a high rate of growth over all. It’s clear that the economy has bottomed out,” Koichi Haji, chief economist in Tokyo, said. “But much of the recovery has been thanks to government spending, so well most likely see growth slow going forward,” Haji said. “It’s too soon to say we’re out of the woods.”
POSTED BY:
PALLAVI SINGH
PGDM III SEM
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