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Japan revises Q3 GDP growth up to 1.2 pct

Dec 09, 2024

Tokyo [Japan], December 9: Japan's Cabinet Office on Monday revised the country's economic growth for the third quarter to an annualized rate of 1.2 percent, up from the preliminary estimate of 0.9 percent.
Quarter-on-quarter growth came in at 0.3 percent, compared with a 0.2-percent rise in preliminary data and marking the second consecutive quarter of expansion, the data showed.
The growth was primarily driven by personal consumption, which makes up over half of Japan's gross domestic product (GDP). However, automobile sales statistics adjustments led to a slight downward revision in consumption figures.
Corporate investment, exports, and housing investment saw upward revisions, reflecting a moderate recovery in these sectors.
While GDP growth was supported by factors such as the recovery in car sales after certification issues and temporary stockpiling demand due to natural disasters, concerns remain about whether consumer spending can maintain its current momentum, which raised questions about the sustainability of the economic recovery moving forward.
The Japanese government has maintained its assessment that the country's economy is recovering gradually despite some areas of stagnation.
In its monthly economic report for November, Japan's Cabinet Office observed mixed trends in consumer spending.
While a persistent rise in food prices has driven cost-saving behaviors, recovery in automobile sales, which had previously declined due to certification irregularities, has contributed to an improved outlook.
The Bank of Japan (BOJ) ended its negative rate policy in March this year with the first rate hike in 17 years, followed by another increase in July. It kept its policy rate unchanged at September and October meetings.
Market observers have speculated that the BOJ might announce another rate hike at its meetings this month or next.
Source: Xinhua