Japanese Stimulus Leads to 4% Growth
The Japanese Times reports:
Japan's economy grew at an annual pace of 3.9 percent in the three months through September thanks to robust private consumption prompted by government stimulus programs, the Cabinet Office said in a preliminary report Monday.
The result, however, has experts worried at a time when exports and production are beginning to slow.
Gross domestic product stood at $1.3719 trillion in the July-September quarter, according to the office, which estimated that China — on course to surpass Japan as the world's second-biggest economy — logged $1.4154 trillion in the same time frame. But it also said Japan's GDP surpassed China's for the nine months through September.
Japan's latest data corresponded to a 0.9 percent expansion from the April-June quarter, the office said. The figures were well above the market's average forecast for 2.6 percent annualized and 0.6 percent quarterly growth in a Kyodo News survey.
Despite the robust data, economic and fiscal policy minister Banri Kaieda said the Japanese economy is stalling, voicing concerns about the dollar's weakness against the yen and slowdowns in overseas economies weighing on Japan's exports.
"We will continue watching economic developments down the road as there are downside risks to the economy, such as fears about a global economic downturn and the impact of the yen's appreciation," Kaieda said in a written statement.
