TOKYO: Japan’s economy grew 1.3 percent in July to September from a year earlier, according to revised data reflecting weaker business investment and exports. It was the third-straight quarter of expansion, but well below forecasts by most economists of an upward revision. The preliminary estimate put annual growth at 2.2 percent in the last quarter.
Quarterly growth for the world’s third-largest economy was 0.3 percent, down from the earlier reported 0.5 percent. Japan has yet to attain the strong momentum Prime Minister Shinzo Abe has been promising since he took office four years ago, pledging to spur investment by rekindling inflation. So far, his strategy has rested heavily on massive asset purchases by the central bank. The country remains far from the 2 percent inflation target set in early 2013.
Thursday’s downgrade reflects a 0.4 percent drop in business investment from the previous quarter. Originally it was reported as flat. Exports grew 1.6 percent, below the 2.0 percent earlier figure. The latest data come amid mixed signals: on Thursday, China reported a rebound in trade that could auger well for Japan’s exports, since it supplies many of the materials and components used by Chinese manufacturers.