Tokyo: Japan’s economy expanded in the final quarter of 2018 as the negative impact from a series of natural disasters over the summer receded, government data showed on Thursday.
The world’s third largest economy benefitted from a rise in domestic demand, including in corporate investment and household spending.
Gross domestic product for the last quarter of 2018 expanded 0.3 per cent from the previous quarter, Cabinet Office data showed, after a 0.7 per cent contraction in the quarter before.
The growth was slightly below the 0.4 per cent that had been forecast by experts. The largest driver of the rise — an annualised rate of 1.4 per cent — was corporate investment, which rose 2.4 per cent after a sharp contraction in the previous quarter.
But while domestic demand rose, weak exports offset some of positive factors, the Cabinet Office said.
“Consumption and investment recovered in a straightforward reaction after drops in the July-September quarter hit by natural disasters,” Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute, said. “But exports, while positive, were weak and not enough to recover to the level before the previous quarter,” he said. — AFP
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