Japan's economy grew at its fastest pace in two years in the three months to the end of June as companies stepped up spending on machinery to feed strong demand for exports, revised data showed on yesterday.
The data supported the view that the world's second-largest economy is on the mend, though many economists had doubts over whether the growth would stay as strong, particularly after a cool summer that has dampened demand.
"There's no doubt the economy is recovering, but the figures are probably overstating it," said Toshikimi Kaneki, economist at Sumitomo Trust and Banking.
The government said real GDP expanded 1.0 percent in April to June from the previous quarter, up from an initial reading of 0.6 percent.
On an annualized basis, Japan's economy expanded 3.9 percent, exceeding growth of 3.1 percent in the US, the biggest single destination for Japanese exports.
"Japan's economy is still laden with structural weaknesses. I don't think the 3.9 percent annualized growth rate is a sustainable one," said Merrill Lynch economist Takuji Aida.
"We believe Japan's economy won't enter a phase of sustained and stable growth until the end of the next fiscal year."
The GDP figures, which are adjusted for price changes, showed spending on plant and machinery rose 4.7 percent from the previous quarter, also the biggest rise in 10 quarters. The government had initially reported a 1.3 percent rise.
As evidence of an improving climate for business, Casio Computer Co Ltd said yesterday that strong sales of digital cameras and watches would help it easily beat its group recurring profit forecast of ?6 billion (US$51 million) for the first half.
Market reaction to the GDP data was restrained, but there was speculation that Japanese authorities had intervened to hold back the yen from rising too much against the US dollar. By the afternoon it was around ?116.80/85 almost flat from late on Tuesday in New York.
The strong yen reflects optimism over Japan's economy and stock market, but officials worry it could undermTuesday on the improved outlook, finished down 0.6 percent at 10,856.32 on yesterday.
Despite the budding optimism, however, analysts said the economy was still vulnerable to chronic deflation and massive bad loans in the banking system.
Many also saw slower growth ahead, saying cool weather since July had discouraged consumers from shopping and eating out.
The government is aiming to recruit 1,096 foreign English teachers and teaching assistants this year, the Ministry of Education said yesterday. The foreign teachers would work closely with elementary and junior-high instructors to create and teach courses, ministry official Tsai Yi-ching (蔡宜靜) said. Together, they would create an immersive language environment, helping to motivate students while enhancing the skills of local teachers, she said. The ministry has since 2021 been recruiting foreign teachers through the Taiwan Foreign English Teacher Program, which offers placement, salary, housing and other benefits to eligible foreign teachers. Two centers serving northern and southern Taiwan assist in recruiting and training
WIDE NET: Health officials said they are considering all possibilities, such as bongkrekic acid, while the city mayor said they have not ruled out the possibility of a malicious act of poisoning Two people who dined at a restaurant in Taipei’s Far Eastern Department Store Xinyi A13 last week have died, while four are in intensive care, the Taipei Department of Health said yesterday. All of the outlets of Malaysian vegetarian restaurant franchise Polam Kopitiam have been ordered to close pending an investigation after 11 people became ill due to suspected food poisoning, city officials told a news conference in Taipei. The first fatality, a 39-year-old man who ate at the restaurant on Friday last week, died of kidney failure two days later at the city’s Mackay Memorial Hospital. A 66-year-old man who dined
EYE ON STRAIT: The US spending bill ‘doubles security cooperation funding for Taiwan,’ while also seeking to counter the influence of China US President Joe Biden on Saturday signed into law a US$1.2 trillion spending package that includes US$300 million in foreign military financing to Taiwan, as well as funding for Taipei-Washington cooperative projects. The US Congress early on Saturday overwhelmingly passed the Further Consolidated Appropriations Act 2024 to avoid a partial shutdown and fund the government through September for a fiscal year that began six months ago. Under the package, the Defense Appropriations Act would provide a US$27 billion increase from the previous fiscal year to fund “critical national defense efforts, including countering the PRC [People’s Republic of China],” according to a summary
‘CARRIER KILLERS’: The Tuo Chiang-class corvettes’ stealth capability means they have a radar cross-section as small as the size of a fishing boat, an analyst said President Tsai Ing-wen (蔡英文) yesterday presided over a ceremony at Yilan County’s Suao Harbor (蘇澳港), where the navy took delivery of two indigenous Tuo Chiang-class corvettes. The corvettes, An Chiang (安江) and Wan Chiang (萬江), along with the introduction of the coast guard’s third and fourth 4,000-tonne cutters earlier this month, are a testament to Taiwan’s shipbuilding capability and signify the nation’s resolve to defend democracy and freedom, Tsai said. The vessels are also the last two of six Tuo Chiang-class corvettes ordered from Lungteh Shipbuilding Co (龍德造船) by the navy, Tsai said. The first Tuo Chiang-class vessel delivered was Ta Chiang (塔江)