Japan GDP slows to 0.5% in final quarter of 2017

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Consumer spending accounts for about 60% of Japan’s economy

Japan’s economic growth slowed within the last three months of 2017 along with also missed expectations, preliminary official figures show.

the globe’s third-largest economy expanded at an annualised rate of 0.5% within the quarter, against analyst forecasts of 0.9%.

nevertheless This kind of is actually still the country’s eighth consecutive quarter of growth – the longest streak since the late 1980s.

The GDP figures compare with annualised growth of 2.2% within the previous quarter.

Annualised growth rates represent a value of growth if the quarter-on-previous quarter rate of change were maintained for a full year.

‘Positive position’

Despite the disappointing data, there were signs of confidence among Japanese shoppers.

Consumer spending, which accounts for about 60% of Japan’s economy, rose by 0.5% compared with the quarter before, against expectations for a rise of 0.4%.

Tokyo-based economist Jesper Koll told the BBC which for the 1st time in 30 years, the country’s economy was in a positive position.

“You’ve got wages improving, along with also the quality of jobs is actually improving, so the overall environment for consumption is actually currently a positive one, while over the last 30 years This kind of was a negative one,” said Mr Koll, via WisdomTree asset management company.

“which’s the key point which’s driving the steady expansion of Japan.”

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