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8 December 2017
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Japan economy (The Total
Investment & Insurance Solutions)
Japan's economy is gaining momentum, expanding at a 2.5 percent annual
pace in July-September, the government said Friday.
The upward revision from an earlier estimate of 1.4 percent growth
reflects higher business investment and rising inventories, it said.
In quarterly terms the world's third-largest economy expanded at a 0.6
percent pace, twice the original estimate, the report said.
Private demand rose 0.3 percent from the previous quarter; the earlier
estimate had it flat. The Total
Investment & Insurance Solutions
A revival in demand across the region and in other major markets has
helped breathe new life into Japan's recovery. However, annual growth in net
exports was unchanged in this latest report, at 0.6 percent.
Prime Minister Shinzo Abe has announced plans for longer-term efforts to
support growth and productivity as the nation ages and its population declines
— a trend that is causing alarm but also creating new business opportunities in
automation and services for Japan's fast growing population of senior citizens.
The economy is in its longest expansion in years, with unemployment
below 3 percent, but growth remains meager and inflation is still well below
the 2 percent official target. Economists say that wages are rising too slowly
to ignite faster price increases, and Abe and other officials have urged
companies to use huge cash piles that have accumulated over the past few years
to help spur growth through investment and wage hikes. The Total Investment & Insurance Solutions
Other data reported Friday showed year-on-year growth in cash income
slowing to 0.6 percent in October from 0.9 percent in September, mainly due to
lower bonus payments. The Total
Investment & Insurance Solutions
Productivity is rising just 0.4 percent in annual terms, not fast enough
to force companies to raise prices, Marcel Thieliant of Capita Economics said
in a commentary. The Total Investment
& Insurance Solutions
"However, the economy is running into capacity constraints and
firms face increasingly severe staff shortages. The upshot is that the
expansion should slow again before long," he said.The Total Investment & Insurance Solutions
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