Press Release (ePRNews.com) - SHANGHAI - Nov 20, 2017 - Japan’s economy grew at a more rapid rate than anticipated in the third quarter thanks to strong export activity, recording the longest stretch of continuous growth in more than 10 years.
According to a recent report released by Shanghai, China-based investment house, Ashton Whiteley, Japan’s economy grew at a 1.4 percent yearly rate in the period from July to September, marginally higher than the average estimate for yearly growth of 1.3 percent. This growth followed 2.6 percent of annualized growth in the second quarter.
According to Ashton Whiteley economists, consumer spending dropped for the first time in seven quarters but this fall is thought to be temporary with the low rate of unemployment likely to boost consumer spending in the coming months.
It is expected that growing exports and capital expenditure will also help to boost the economy and alleviate concerns about inflation that continues to frustrate efforts to push it to the BoJ’s two percent target.
An Ashton Whiteley economist stated that the potential growth rate for Japan is approximately one percent, meaning that the figures for the period from July to September are actually fairly high.
With a strong employment market, domestic consumption is likely to gain traction again in the near future.
Gross domestic product (GDP) increased by 0.3 percent in the third quarter, indicating that Japan’s economy has grown for seven uninterrupted quarters, making this the longest period of expansion in 16 years.
The Ashton Whiteley report also revealed that domestic incomes had maintained steady growth and external demand remains at a stable level.
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