Japan revises up GDP growth for Q3 to 5.3%
Tokyo, Dec 8 (efe-epa).- Japan on Tuesday revised upwards the growth of the gross domestic product (GDP) for the third quarter of this year and put it at 5.3 percent, 0.3 percent more than reported in the preliminary data in November.
The 5.3 percent growth between July and September compared to the preceding quarter confirms the recovery trend of the world’s third-largest economy after the coronavirus pandemic impact.
It also contrasts with an 8.3 percent decline in economic activity between April and June in comparison with the previous quarter and the 0.5 percent decrease that occurred between January and March.
According to official data, between July and September, private consumption, which accounts for half of the Japanese GDP, expanded 5.1 percent from the previous quarter, 0.4 percent more than the growth mentioned in the preliminary data.
Private consumption had decreased by 8.3 percent in the second quarter and 0.6 percent in the first, in both cases compared to the preceding quarters.
However, the recovery is moderate because Japan’s GDP shrank by 5.8 percent in the third quarter over the same period of 2019, while in the second quarter, the year-on-year decline was 10.3 percent.
There has been a negative GDP development over the previous quarter since the fourth quarter of 2019 when the Japanese economy contracted due to an increase in the consumption tax rate in October.
The Bank of Japan estimates that the GDP will post a contraction of 5.5 percent during the current fiscal year ending on Mar.31 although it expects it to expand by 3.6 percent in the next financial year.
Japan’s GDP grew by 0.7 percent in 2019 and by 0.3 percent in 2018.
Japan had a current account surplus of 2.14 trillion yen ($20.61 billion) in October, its 76th consecutive month of positive balance, the government announced Tuesday.
The figure is 15.7 percent higher than the same month of 2019, according to data released by the finance ministry.
Japan’s trade balance recorded a surplus of 971.1 billion yen, almost five times the surplus in October 2019.
Exports fell 3.2 percent in October compared to the same month of 2019, to 6.32 trillion yen.
Meanwhile, imports decreased year-on-year by 15.2 percent in October to 5.35 trillion yen.
The trade balance in services recorded a deficit of 348.6 billion yen in October, four times more than the deficit recorded in the same month of 2019.
The income account registered a surplus of 1.79 trillion yen, 2.6 percent less than in October last year.
Transfers recorded a deficit of 228.3 billion yen in the 10th month of 2020, almost twice that recorded a year ago. EFE-EPA