Japan's economy has grown at an annual 1.0 per cent pace in the July to September quarter, according to revised data that indicates the country dodged a recession.
Earlier estimates had shown growth for the world's third-largest economy at minus 0.8 per cent, the second straight quarter of contraction. Two consecutive quarters of contraction are considered a technical recession.
The revised growth estimate issued on Tuesday shows stronger corporate investment and a slightly higher pace of growth in exports than earlier reported.
On a quarterly basis the economy expanded 0.3 per cent from the previous quarter instead of contracting 0.2 per cent as the earlier estimate showed.
"Upbeat business surveys and a rebound in industrial production suggest that economic activity will continue to recover this quarter," Marcel Thieliant of Capital Economics said in a commentary.
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He noted that the revised growth estimate raises the likelihood the Bank of Japan will not increase monetary stimulus soon, despite slow progress towards its goal of 2 per cent inflation.
