japans economy grows more than earlier estimated in fourth quarter
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

Japan's economy grows more than earlier estimated in fourth quarter

Egypt Today, egypt today

Egypt Today, egypt today Japan's economy grows more than earlier estimated in fourth quarter

Japan’s economy
Tokyo - Arab Today

Japan's economy grew more than earlier estimated in the fourth quarter as capital expenditure grew at its fastest in almost three years, welcome news for policymakers as they begin to discuss how to wind down years of massive stimulus.

The economy grew an annualised 1.2 per cent in October-December, less than the median estimate for 1.6 per cent annualised growth but more than the preliminary reading of a 1.0 per cent annualised expansion. 

The figure translates into quarter-on-quarter growth of 0.3 per cent, versus a preliminary reading of 0.2 per cent growth and the median estimate for 0.4 per cent growth.

A stronger pace of growth will be a boon to the government as policymakers have been counting on an increase in business investment to drive future expansion and increase low productivity.

However, growth is still not robust enough to generate sustained inflation that the Bank of Japan wants, and the risk of rising protectionism could discourage Japanese exporters from raising wages, seen as key to boosting consumption and economic activity at home.

"The economy will remain in recovery mode, because we are seeing the benefits of capital expenditure from manufacturers and the construction sector," said Shuji Tonouchi, senior market economist at Mitsubishi UFJ Morgan Stanley Securities.

"I am a little worried about the strength of consumer spending. I am still not sure how protectionism will materialise, but this is also a potential risk."

Private consumption registered no growth in October-December, the same as preliminary data. Sluggish household spending has kept the country in prolonged deflation and been a key challenge for the BOJ in meeting its 2 per cent price goal via its massive bond buying programme.

Households cut spending for the 11th straight month in January even as the job market tightened further, separate data showed earlier this month. Private consumption accounts for around 60 per cent of GDP.

Stronger capex

The capital expenditure (capex) component of GDP rose 2.0 per cent from the previous quarter, which was more than the forecast for 1.7 per cent growth, and faster than the preliminary 0.9 per cent.

The revised data showed capital expenditure grew at the fastest since a 2.3 per cent quarterly rise in January-March 2014.

Increased investment from the real estate sector, construction companies, food processing companies and electronics makers drove gains in capex, a Cabinet Office official told Reuters.

Some economists expect capital expenditure to increase further as companies will soon have to start investing in more efficient equipment to deal with a shrinking pool of workers as the population ages.

However, US economic policy poses a risk, because companies could suddenly turn cautious on capex if US President Donald Trump adopts protectionist trade policies.

There are also concerns that protectionism could hurt Japan's exports.

After capital expenditure, net exports were the second-biggest driver of growth in the fourth quarter, revised data showed.

However, the plus 0.2 percentage point contribution from net exports was unchanged from preliminary figures, which raises questions about the strength of external demand.

Source :Times Of Oman

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

japans economy grows more than earlier estimated in fourth quarter japans economy grows more than earlier estimated in fourth quarter



GMT 06:29 2011 Monday ,14 November

Matthew cruises to win at Ochoa Invitational

GMT 03:34 2017 Wednesday ,22 March

Tillerson to skip NATO meeting next month

GMT 13:44 2013 Friday ,15 March

Israel suppress Palestinian demonstrations

GMT 16:15 2017 Monday ,01 May

Moroccan Workers’ Syndicate

GMT 11:56 2016 Wednesday ,12 October

Toyota, Suzuki eye partnership as industry consolidates

GMT 15:42 2011 Thursday ,23 June

Express checks in with foursquare

GMT 10:49 2017 Sunday ,13 August

Car rams into crowd at violent Virginia rally

GMT 17:45 2013 Sunday ,20 October

5 Indian spices that are good for your health

GMT 08:41 2012 Saturday ,15 September

Italian magazine: will print Kate topless snaps

GMT 08:02 2012 Tuesday ,05 June

Zoe Saldana in Prabal Gurung

GMT 06:11 2012 Saturday ,15 September

Tunisia’s Media Conflict: Journalists fight for freedom

GMT 14:35 2015 Friday ,24 July

Awqaf Minister hails New Suez Canal project

GMT 16:34 2017 Thursday ,28 December

Hitler's Nazi-parade Mercedes set

GMT 11:22 2011 Monday ,10 October

Paul McCartney to play in Moscow in December

GMT 05:17 2015 Friday ,25 September

Pope expresses solidarity with Muslims after stampede

GMT 05:44 2012 Saturday ,21 April

ATV engine 95 HP

GMT 03:01 2011 Monday ,19 September

Laughter, tears at US television\'s Emmy awards

GMT 12:04 2012 Wednesday ,07 March

6 Music animation draws on 10 years of eclectic radio

GMT 01:00 2015 Sunday ,05 April

Barzani congratulates Abadi on Tikrit victory

GMT 13:24 2015 Thursday ,15 October

Tesla installs 'autopilot' update

GMT 06:17 2012 Monday ,02 January

Countries across the world celebrate the New Year

GMT 04:07 2016 Tuesday ,07 June

For new era of self-driving cars

GMT 08:21 2017 Saturday ,23 December

Saudi-Sudanese Deal to Ease Transfers

GMT 11:08 2017 Thursday ,21 December

Asian markets mostly down as tax cut euphoria wanes
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday