Thanks to rising exports, the Japanese economy has recorded the longest growth phase in 16 years. The gross domestic product (GDP) has been rising for seven quarters in a row. As the government of the third largest economy in the […]
Thanks to rising exports, the Japanese economy has recorded the longest growth phase in 16 years. The gross domestic product (GDP) has been rising for seven quarters in a row.
As the government of the third largest economy in the world announced on Wednesday, the gross domestic product (GDP) rose between July and September by an extrapolated annual rate of 1.4 percent, for seven quarters in a row. However, growth was lower than in the previous quarter, when GDP had increased by an extrapolated 2.6 percent. Compared to the previous quarter, the Japanese economy grew by 0.3 percent between July and September, it said.
Inflation remains low
The data make it clear that Japan continues to depend on its export engine. Exports rose 1.5 percent in the quarter thanks to overseas demand for Japanese electronic parts and automobiles. Private consumption, on the other hand, which contributes around 60 percent to Japan’s economic output, fell by 0.5 percent in the reporting quarter. Although the government has been launching economic stimulus packages worth billions for years and the central bank has been flanking an aggressively relaxed monetary policy, inflation in Japan remains low.
The government hopes that the high labor shortage will finally lead to higher wages and rising prices. In view of the tense situation on the labor market, experts are expecting a further increase in demand for automation. Corporate investments rose by 0.2 percent compared to the previous quarter. Meanwhile, consumers are reluctant to spend more. The government nevertheless expects the moderate recovery to continue.