Japan’s GDP Grew at 2.2% in Q3

Stronger exports and housing investment helped Japan’s economy grow at a 2.2 percent annualized pace in the July-September quarter, better than many analysts had anticipated and fast enough to stave off further central bank stimulus for now.

The Cabinet Office reported Monday that based on preliminary estimates, the economy expanded 0.5 percent from the previous quarter.

Initial growth estimates are often revised significantly based on updated data.

“Japan’s GDP figures are notoriously volatile, so we wouldn’t be too surprised it output fell in the current quarter,” Marcel Thieliant of Capital Economics said in a research note. “However, business surveys climbed to multi-month highs in October, which suggests that growth is holding up.”

The 2.2 percent pace of year-on-year growth was sharply higher than the 0.2 percent pace seen in April-June.

With unemployment at about 3 percent, aggregate income has risen even if wages have remained flat.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza