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Japanese quarterly GDP up 1pc on exports, marking 2016 as turnaround year
JAPAN's economy expanded for a fourth quarter in 2016 on an annualised basis with a one per cent increase in gross domestic product (GDP) from the previous quarter as export gains offset sluggish domestic demand, according to the Cabinet Office.
Japan's fourth-quarter growth marked the first time in more than three years that the economy expanded for four consecutive quarters.
The yen's decline following Donald Trump's election is providing a tailwind for Japanese exporters and corporate earnings, and a moderate export-driven recovery is expected to continue, reported Bloomberg.
Business spending rose 0.9 per cent (estimate +1.2 per cent) while net exports, or shipments less imports, added 0.2 percentage point to GDP.
"This is really an export-driven recovery. Private consumption has been weak, and unless private consumption is fired up, it's hard to see growth accelerating very strongly from here," said Merrill Lynch Japan Securities economist Izumi Devalier.
Said Credit Suiss economist Takashi Shiono: "It's good to see consumer spending isn't falling, but it has no power to pick up and become a leading engine for the economy because of small wage growth. Business investment has been solid but I don't expect it to accelerate from here."
Japan's fourth-quarter growth marked the first time in more than three years that the economy expanded for four consecutive quarters.
The yen's decline following Donald Trump's election is providing a tailwind for Japanese exporters and corporate earnings, and a moderate export-driven recovery is expected to continue, reported Bloomberg.
Business spending rose 0.9 per cent (estimate +1.2 per cent) while net exports, or shipments less imports, added 0.2 percentage point to GDP.
"This is really an export-driven recovery. Private consumption has been weak, and unless private consumption is fired up, it's hard to see growth accelerating very strongly from here," said Merrill Lynch Japan Securities economist Izumi Devalier.
Said Credit Suiss economist Takashi Shiono: "It's good to see consumer spending isn't falling, but it has no power to pick up and become a leading engine for the economy because of small wage growth. Business investment has been solid but I don't expect it to accelerate from here."
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