Japan says economy grows 0.5% in July-September

Businessmen walk in front of an electronics stock indicator flashing Tokyo’s closing rate on November 10, 2016. Asian equities rallied on November 10, joining a goldrush across world markets as the initial shock of Donald Trump’s election win was replaced by hopes his plan to kickstart the US economy will succeed. Japan’s key Nikkei 225 index, which plummeted 5.4 percent on the previous day, jumped 1,092.88 points or 6.72 percents to close at 17,344.42. / AFP PHOTO / JIJI PRESS / JIJI PRESS / Japan OUT

Tokyo, Japan (AFP) — Japan’s economy grew more than expected in the third quarter as exports offset slack consumer spending, official data showed Monday.

The world’s third largest economy expanded 0.5 percent quarter-on-quarter between July and September, for an annualized 2.2 percent expansion in Gross Domestic Product (GDP), the Cabinet Office said.

The market had forecast a slower 0.2 percent growth rate, or an annualized expansion of 0.8 percent.

Japan’s economy contracted in the last three months of 2015, before bouncing back in January-March with a 0.5 percent rise quarter-on-quarter and then a tepid 0.2 percent expansion in April-June.

The wobbly growth trend has put Japanese officials under pressure to deliver as economists increasingly write off Prime Minister Shinzo Abe’s bid to cement a lasting recovery, dubbed Abenomics.

His spend-for-growth policy since late 2012 boosted stock prices and pushed down the yen, helping Japanese exports.

But the yen, often bought as a safe haven in times of uncertainty, had been on the upswing since the start of the year, and got a big bump after Britain’s shock vote to exit the European Union.

It has since reversed course, falling against the dollar after billionaire businessman Donald Trump’s election as US president, offering up some good news for Abe’s administration.

The Japanese currency was around four-month lows against the dollar, brightening the outlook for exporters in the coming months.

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