Japan’s GDP grew at a 22.9pc in the July-September period, slightly above estimates of a 21.4pc on strong private consumptions, according to a government press release. The Japanese economy recovered gradually from pandemic-related hurdles as businesses recovered and personal spending increased.
Core household spending expanded in October which led to higher GDP growth. However, compared to 2019, the level of economic output is still 3.9pc lower. The economy suffered losses on the foreign tourism front, affected by COVID-19 but this was offset by the government’s efforts to encourage domestic spending.
In April-June, Japan’s economy contracted 29.2pc amid the state of emergency declared by the government to curb COVID-19 pandemic. Government investments, private residential investment and government consumption grew slowly in the September quarter. The government believes that the December quarter will also report gains but slower in relation to Q3.
Japanese Prime Minister Yoshihide Suga announced a stimulus package JPY73.6trillion ($707bn) on Dec 7 to sustain economic growth at this pace and recover from the consequences of COVID-19.