Japan’s economy expanded at an annual pace of 4.8 percent in the third quarter, the government said yesterday, marking the second straight quarter of growth and the biggest rise in real GDP since 2007.
On a quarterly basis, GDP was up 1.2 percent in July to September from the previous three-month period, the Cabinet Office’s preliminary data showed.
The figure beat Kyodo news agency’s forecast for an annualized increase of 2.6 percent and quarterly growth of 0.6 percent.
GDP, or the total value of the nation’s goods and services, rose at a revised annual pace of 2.7 percent in the April to June period after posting a record decline in the first quarter.
Driving the third-quarter economy was a 1.6 percent increase in capital spending by companies, bolstered by recovering global demand.
Japan’s economy, which relies heavily on the world to buy its cars and gadgets, fell into its worst recession since World War II earlier this year in the wake of the global financial crisis.
Kyodo reported that Japanese Deputy Prime Minister Naoto Kan said the figures reflected the ongoing economic recovery in Japan and the world.
Emergency spending by governments around the world has spurred demand, particularly in China and the rest of Asia.
Exports jumped 6.4 percent from the April to June period, the Cabinet Office said.
Japan’s factory output rose for the seventh straight month in September and “continues to show an upward movement,” the government said last month.
Domestic stimulus measures and consumer incentives to buy eco-friendly products have also helped. Consumer spending, which accounts for about 60 percent of Japanese GDP, rose 0.7 percent from the second quarter.
Corporate earnings reports over the last few weeks showed that companies were already benefiting.
Toyota Motor Corp, the world’s biggest automaker, announced a surprise profit last quarter and trimmed its projected red ink for the year. Rivals Honda Motor Co and Nissan Motor Co released healthier earnings reports as well.
Still, the central bank predicted last month that it would be a sluggish next few years for Japan. It warned of a tepid recovery combined with three straight years of deflation.
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