Japan avoids recession, 1% quarter growth

Japan has avoided recession with the economy growing a revised 1% in the July to September quarter thanks to higher corporate investment and exports.

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.

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.


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Source: AAP



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