Japan GDP Up by 4.8% in July-Sept Quarter

Japan's 2009 Q3 (July-Sept) GDP grew an annualized real 4.8 percent for the second straight quarter, following a 2.7 percent p.a. increase in Q2.

In the July-Sept quarter, consumer spending, which makes up about 60 percent of Japanese GDP, rose a real 0.7 percent from the April-June quarter, as durable goods spending increased on tax breaks on eco-cars and a government reward program for purchases of greener consumer electronics increased. Corporate capital spending also rose 1.6 percent for the first increase in six quarters. Japanese exports increased 6.4 percent, reflecting higher demand from other Asian countries, while imports rose by 3.4 percent.

Despite the GDP growth in real terms, nominal GDP fell 0.1 percent from the last quarter reflecting price decrease.

The Bank of Japan forecasted in its twice-yearly outlook released Oct. 30 that Japan's economy will grow about 1.2 percent next fiscal year (April 2009 - March 2010) after shrinking 3.2 percent in fiscal 2009.