Japan upgrades third quarter GDP
Japan’s economy expanded at a much faster pace than initially reported in the third quarter, as resilient domestic demand and business spending offset the hit to growth from falling exports and global trade tensions.
Gross domestic product grew an annualised 1.8 percent in July-September, stronger than the preliminary reading of 0.2 percent annualised growth, Cabinet Office data showed Monday. The firmer growth marked the fourth consecutive quarter of expansion and also beat economists’ median forecast for a 0.7 percent gain. It was mostly driven by improvements in capital expenditure and private consumption.
However, analysts say the third quarter strength, which was the weakest growth seen this year, masks some fragility that could to lead to a much weaker performance going forward.
“While Japan’s economy expanded more rapidly ahead of October’s sales tax hike than initially estimated, output is set to shrink in 2020,” said Marcel Thieliant, senior Japan economist at Capital Economics.
