AFP / File / Kazuhiro NOGI
The gains were driven by rising exports from robust global demand and increased spending by the United States.
Japan is growing twice as fast as it is in the United States, reported on Friday, with the world’s third-largest economy. Gross domestic product in the third quarter rose 0.6 percent compared to the previous quarter, the Cabinet Office said, doubling a previous estimate of 0.3 percent.
The gains were driven by rising exports from robust global demand and increased spending by the United States. It was the seventh straight quarter of economic expansion – the best run for Japan since 1994 – and handily beat market expectations of a slight upwards revision. The future looks bright for the Japanese economy, said Yuichiro Nagai, an economist at Barclays Capital, who predicted a further expansion next quarter. “He said,” we are recovering global economy, corporate activity is quite strong – as reflected in capital investment, “he said. Capital spending – Investment in plant and plant by private firms – was revised from 0.2 percent to 1.1 percent for the July-September quarter. “The solid investment shows Japan’s economy is making a step forward to a self-sustained recovery,” Hidenobu Tokuda, a senior economist at Mizuho Research Institute, told Bloomberg News. On the downside, private consumption fell 0.5 percent but this could be due to a reaction from the previous quarter and bad summer weather, economists said. Private spending should be short, Nagai said. Investments linked to the Tokyo 2020 Olympics have also contributed to growth, he added. The latest figures are good news for Prime Minister Shinzo Abe, who has been trying to save the economy with his pro-spending policy. The government may declare in early 2019 or late 2018 that the nation is finally out of the world, said Nagai. Falling prices can be discouraged spending by consumers, who can postpone the purchase of money instead. That creates a cycle in which firms cut back on expanding production, hiring new workers or increasing wages. At an annualized rate, the Cabinet Office said the economy grew by 2.5 percent, up from 1.4 percent previously.

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