According to a report released this morning (November 16), Japan’s third quarter GDP grew by 21.4% q-o-q, the strongest since 1968.
After a record plunge due to the Covid-19 pandemic, Japan’s economy recovered stronger than expected thanks to the reopening of business, rapid trade and governmental stimulus measures. consumer spending jumped.
According to a report released this morning (November 16), Japan’s third quarter GDP grew by 21.4% q-o-q, the strongest since 1968. Previously, economists only forecasted the 18.9% growth.
The strongest growth momentum in more than half a century shows that Japan’s economy is on the way to recover after 3 consecutive quarters of decline. Before the first wave of Covid-19 came, Japan’s GDP declined due to an increase in sales tax.
The recovery was mainly driven by improved trade with the US and China, the auto industry flourishes and household spending increased as the government decided to reopen the economy later. 5 weeks for emergency status. The Japanese government also has policies to stimulate domestic tourism.
The minus point of the third quarter was that investment of the business sector decreased by 3.4%, higher than the forecasted figure of 2.9% given earlier.
The country still has a very long way to go to make up for what has been lost after years of sluggishness due to deflation. In addition, the increasing number of new infections both at home and abroad also put great pressure on the fourth quarter GDP.
The speed of Japan’s economic recovery will now depend largely on the epidemic developments in the context of many countries in the world entering winter. The new wave of infections is covering the United States and Europe, and may affect major export markets. The number of cases in the country also set a new record, leading to the possibility of having to re-impose blockade measures.