stanley white and leila kihara
tokyo (reuters) – japan’s economy grew in the third quarter of higher growth than expected, particularly in favour of the good export performance of the country, with a seventh consecutive quarter of gdp growth, had its longest period of growth for more than ten years.
according to data published on wednesday by the japanese government, the gross domestic product (gdp) increased by 1.4% annualized over the period july to september, while economists polled by reuters had expected an increase of 1.3%.
in the first quarter, growth was up to 2.6% (revised figure), annualized.
consumer spending fell for the first time in seven months, but this is seen as temporary in a situation of full employment, which should boost household consumption in the near future.
the increase in investment spending and exports should also continue to support the growth of the world economy, which should help to dispel the doubts with regard to low inflation.
the rate of potential growth in japan is around 1%, the third quarter results show that the actual growth rate is quite high, “says hidenobu tokuda, an economist with mizuho research institute.
“the job market is so great that consumer spending will certainly continue. investment spending still appear strong. the economy is doing well. “
gdp grew by 0.3%, compared with the previous quarter, which is consistent with the expected average, compared to an increase of 0.6% from one quarter to the next during the period from april to june.
the economy will also grow in the fourth quarter
the supply of cars and electronic components to the united states and asia were strong during the third quarter, reflecting the strong world demand, official data show.
as a comparison, a negative external demand has reduced gdp in the second quarter by 0.2 of a percentage point.
household consumption, which accounts for roughly two-thirds of gdp, declined by 0.5% compared with the previous quarter, in excess of the estimated decline in average 0.3 per cent by economists, which is the first decline in the position since the last quarter of 2015.
this decline is the result of a decrease in expenditure on restaurants and hotels, as well as the reduction in purchases of cars and mobile phones, according to a government official. bad weather may have also affected the consumption, “he said.
“our point of view, according to which the trend is for a moderate recovery of the economy, does not change,” said the japanese minister of economy motegi toshimitsu.
“we must ensure that this recovery is, in order to advance reforms to boost productivity in japan,” said the minister.
according to the economist, marcel thielant, specialist in japan at capital economics, data released wednesday suggest that economic activity will continue to grow in the third quarter, due to external demand should remain strong.
however, the economy is headed for limits in terms of capacity, suggesting that growth will slow down next year. we reiterate our estimate of growth in height of 1% in 2019, compared with 1.5 per cent this year, “he said.
the japanese government plans to announce before the end of the year, a lot of economic measures designed to increase investment in vocational training, and to improve the productivity.
(jean terzian for service in french, edited by ben van overstraeten)
copyright & copy;, thomson reuters
Translated by forexguides.info Team