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Japan economy grows annualized 2.2 percent for Q3

Staff Writer | November 17, 2016
Japan's economy grew an annualized 2.2 percent in real terms in the July-September quarter, expanding for the third consecutive quarter.
Japan worker
Asia   The growth partly attributed to exports
The growth, partly attributed to an export recovery, came in stronger than the average market expectations for an annualized 0.8 percent expansion, according to data issued by Japan's Cabinet Office.

Analysts here, however, are generally concerned about the difficulty Japanese economy is facing, due to weak domestic demands and the stronger yen, as well as the uncertainty of global economic outlook following Donald Trump's victory in the U.S. presidential election.

Japan's exports in the July-September quarter increased 2.0 percent, following a 1.5 percent fall in the April-June period. The imports, however, were down 0.6 percent in the recording period.

Private consumption, which accounts for roughly 60 percent of GDP, posted a modest 0.1 percent growth in real terms, unchanged from the second quarter.

Capital expenditure, another key component of GDP, was almost flat, reflecting worries about the global outlook and the stronger yen among Japanese companies, despite efforts of the government and the central bank to encourage them to invest more.

In nominal terms, the economy expanded an annualized 0.8 percent compared to the previous quarter.