Seventh Straight Quarter of Growth for Japanese Economy

17 November 2003

Japan's economy, the second-largest in the world, has posted its seventh successive quarter of growth.

According to government statistics, gross domestic product rose 0.6% in the three months to September, translating into an annualised rate of 2.2%. This was down from Q2's 0.9% growth (3.5% on an annualised basis).

Government spending fell 3.9% in Q3, while consumer expenditure stayed flat. In addition, business investment growth slowed to 2.8%, from an exceptional 4.7% in the second quarter. "Capital spending in April-June was too strong to be sustainable," commented a Cabinet Office official. "But if you take the two quarters together and level them, it shows that capital investment is still recovering."

One positive for the Japanese economy was a 2.8% surge in exports, reflecting the recovery in the US economy. The rise in external demand accounted for one-third of the 0.6% quarterly growth.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff