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▼ GDP Sees 1.4% Annualized Rise, Marking Longest Growth in 16 Years
- Category:Event
TOKYO (Jiji Press) — Japan’s gross domestic product expanded for the seventh straight quarter in July-September, the longest growth in 16 years, led by strong exports on the back of the global economy recovery, government data showed Wednesday.
The country’s GDP enjoyed such a long spell of expansion for the first time since the eight consecutive increase marked from April-June 1999 to January-March 2001.
The GDP in the second quarter of fiscal 2017 grew 0.3 percent from the previous quarter in price-adjusted real terms, or 1.4 percent on an annualized basis, the Cabinet Office said.
Although the Japanese economy managed to maintain growth thanks to a rise in overseas demand, the pace of increase slowed due to a fall in private consumption.
In nominal terms, the GDP rose 0.6 percent for an annualized increase of 2.5 percent, the government agency said in a preliminary report.
The slowdown in private consumption stemmed from bad weather, a temporary factor, Economic Revitalization Minister Toshimitsu Motegi told a press conference.
“The government will make efforts to make the trend of economic recovery stronger,” he said.
The government will accelerate its work to realize a “revolution” in human resource development, a key policy item for the administration of Prime Minister Shinzo Abe that features free education, Motegi said.
In July-September, real private consumption dropped 0.5 percent on a quarterly basis, the first fall in seven quarters, reflecting the weakness of the service sector, including restaurants and hotels, which was negatively affected by typhoons and a long spell of rain.
Housing investment fell 0.9 percent, reflecting slow demand for both single-family houses and housing for rent.
Public investment shrank 2.5 percent, the first decline in three quarters, as the implementation of the second supplementary budget for fiscal 2016 already passed its peak.
The country’s GDP enjoyed such a long spell of expansion for the first time since the eight consecutive increase marked from April-June 1999 to January-March 2001.
The GDP in the second quarter of fiscal 2017 grew 0.3 percent from the previous quarter in price-adjusted real terms, or 1.4 percent on an annualized basis, the Cabinet Office said.
Although the Japanese economy managed to maintain growth thanks to a rise in overseas demand, the pace of increase slowed due to a fall in private consumption.
In nominal terms, the GDP rose 0.6 percent for an annualized increase of 2.5 percent, the government agency said in a preliminary report.
The slowdown in private consumption stemmed from bad weather, a temporary factor, Economic Revitalization Minister Toshimitsu Motegi told a press conference.
“The government will make efforts to make the trend of economic recovery stronger,” he said.
The government will accelerate its work to realize a “revolution” in human resource development, a key policy item for the administration of Prime Minister Shinzo Abe that features free education, Motegi said.
In July-September, real private consumption dropped 0.5 percent on a quarterly basis, the first fall in seven quarters, reflecting the weakness of the service sector, including restaurants and hotels, which was negatively affected by typhoons and a long spell of rain.
Housing investment fell 0.9 percent, reflecting slow demand for both single-family houses and housing for rent.
Public investment shrank 2.5 percent, the first decline in three quarters, as the implementation of the second supplementary budget for fiscal 2016 already passed its peak.
- November 16, 2017
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