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GDP Data Shows Japan’s Economic Growth Slowing

From Reuters

Japan’s economic growth slowed in the three months to September as the country struggled to hold on to a recovery from its worst postwar slump, government data showed today.

Gross domestic product, the broadest measure of the output of goods and services in the economy, grew a real 0.2% in the July-September quarter from the previous quarter, the Economic Planning Agency said.

That translated into 1.0% annualized growth.

“The overall figures are no surprise,” said Yasushi Okada, chief economist, economic research, at Credit Suisse First Boston.

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“But if exports continue to fall with the slowdown in the U.S. and Europe, GDP could fall quite drastically next time.”

The world’s second-biggest economy is struggling to emerge from its worst slowdown in half a century, posting three straight quarters of growth after a technical relapse into recession in the second half of last year.

But a corporate-sector recovery hasn’t revived consumer spending, which comprises some 60% of GDP, and exports have shown signs of flagging.


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