Japan's economic growth revised upward to 4.5% in Q3

13:42, December 09, 2010      

Email | Print | Subscribe | Comments | Forum 

Japan's economy grew an annualized real 4.5 percent in the July-September quarter, marking the fourth consecutive quarter of expansion and beating economists' forecasts, the Cabinet Office said Thursday in a finalized report, which saw the figure upwardly revised from a 3.9 percent growth.

The July-quarter expansion exceeded median economists' forecasts for 4.1 percent growth and a notable increase in capital spending contributed to the growth, the Cabinet Office said.

As measured by GDP (gross domestic product) this corresponds to 1.1 percent from the previous quarter, from a preliminary reading of 0.9 in the recording period, the government data showed.

Private consumption, which accounts for about 60 percent of GDP, contributed to the expansion as consumers rushed to buy eco- efficient cars, homes and consumer technology ties ahead of the expiration of a government 'green' subsidy and points program, the Cabinet Office said.

Analysts still maintain the pace of the economic growth is likely to slow sharply, or possibly reverse its growth trend in the final quarter of this year, as weakening overseas demand, deflation, waning domestic demand and a strong yen are likely to take their toll on growth.

"The third quarter could be the peak of the expansion and Japan may go into a mini-economic stagnation this quarter," said Seiji Adachi, a senior economist at Deutsche Securities Inc.

"Corporate earnings may deteriorate as the boost from the government's stimulus steps is waning and the global economy is slowing," he said.

Following the latest poll of 42 economists and research institutions conducted by the Cabinet Office's Economic Planning Association (COEPA), economists have revised down their forecasts for Japan's economic growth for this fiscal year and fiscal 2011 while projecting prices in fiscal 2011 and 2012 may not rise as much as expected earlier.

GDP is the total value of goods and services produced domestically. Real GDP data are adjusted for price and seasonal variations.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Five-month-old twin girls, An An (left) and Xin Xin, meaning safe and relieved in Chinese and carrying the good wishes of their parents, leave a Shanghai hospital yesterday, less than four weeks after a September 5 surgery to separate the conjoined twins from Zhejiang Province. They were born connected at the liver, chest bone and heart sac, the covering around the heart. Though they shared one liver and used one pericardium, they have their own hearts.
  • Models present cheongsams designed by Chen Yanqin during a fashion show in Yantai, east China's Shandong Province, Sept. 30, 2011. More than 100 creations of cheongsams, a traditional Chinese women's dress also known as mandarin gown or Qipao, were displayed here Friday. (Xinhua/Li Mingfang)
  • Citizens watch fireworks exploding over the Jingtian Lake during a music firework show in Shanghai, east China, Sept. 30, 2011, on the eve of the National Day. (Xinhua/Pei Xin)
  • A member of the media takes a look at a Bluecar, an electric-powered car made by French company Bollore, at a media presentation in Vaucresson, west of Paris, yesterday. The Bluecars have a range of 250 kilometers in urban use and a maximum speed of 130km per hour, and will be available to rent in the streets of Paris under the name of Autolib. The four-seater Bluecars will be positioned at 1,200 stations in the French capital, where customers can pick them up and drop them off, and will be available around the clock. Users must have a valid driver's license and pay a subscription fee to borrow one of the vehicles.
  • Tourists watch a performance about an ancient court trial. (Photo/Xinhua)
  • U.S. President Barack Obama (4th L, front) shakes hands with outgoing Chairman of the Joint Chiefs of Staff Admiral Mike Mullen (1st R, front) as Vice President Joe Biden (3rd L, front), Secretary of Defense Leon Panetta (2nd L, front), and Army General Martin Dempsey (1st L, front) look on during the Chairman of the Joint Chief of Staff Change of Responsibility Ceremony at Joint Base Myer-Henderson Hall in Arlington, the United States, Sept. 30, 2011. Army General Martin Dempsey succeeded Mike Mullen to become the 18th Chairman of the Joint Chief of Staff on Friday. (Xinhua/Zhang Jun)
Hot Forum Discussion