Japan economy grows for 8th straight quarter, longest since 1980s

AFP, TOKYO: Japan’s economy grew for the eighth straight quarter at the end of 2017, government data showed Wednesday, its longest period of expansion since the “bubble” boom days of the late 1980s.

Gross domestic product in the fourth quarter of last year expanded 0.1 per cent from the previous three months, the Cabinet Office said.

But the growth rate fell short of market expectations of 0.2 per cent and represented a slowdown from the 0.6 per cent in July-September.

At an annualised rate, the world’s third largest economy grew 0.5 per cent.

“The growth rate for the last quarter was very low compared with the bubble period but the economy is solid enough,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

“There are lingering worries over consumption but we can expect the economy to pick up further if ‘shunto’ wage hikes are better than the previous years,” he said, referring to collective wage negotiations between labour and management held every spring.

“The current expansion could be extended further,” he told the news agency.

For the calendar year 2017, the economy grew 1.6 per cent, against 0.9-per cent in 2016.

Japan’s Minister for Economy, Trade and Industry Toshimitsu Motegi said the current expansion was solid compared with the more volatile “bubble” boom in the 1980s, according to Bloomberg News.

Amid speculative investment in land and stocks on low interest rates, the Nikkei stock index hit almost 40,000 in 1989 -- nearly double its current level.

The bubble burst at the start of the 1990s, ushering in a period of low or no growth known as the “lost decades”.

The current period of growth is good news for Prime Minister Shinzo Abe, who has been trying to fire up the economy with his pro-spending policy dubbed Abenomics since he took office in late 2012.

Junko Nishioka, chief economist at Sumitomo Mitsui Banking Corp., also said an uptick in income suggested the Japanese economy would expand further.

 

Japan economy grows for 8th straight quarter, longest since 1980s

AFP, TOKYO: Japans economy grew for the eighth straight quarter at the end of 2017, government data showed Wednesday, its longest period of expansion since the bubble boom days of the late 1980s. Gross domestic product in the fourth quarter of last year expanded 0.1 per cent from the previous three months, the Cabinet Office said. But the growth rate fell short of market expectations of 0.2 per cent and represented a slowdown from the 0.6 per cent in July-September. At an annualised rate, the worlds third largest economy grew 0.5 per cent. The growth rate for the last quarter was very low compared with the bubble period but the economy is solid enough, said Takeshi Minami, chief economist at Norinchukin Research Institute. There are lingering worries over consumption but we can expect the economy to pick up further if shunto wage hikes are better than the previous years, he said, referring to collective wage negotiations between labour and management held every spring. The current expansion could be extended further, he told the news agency. For the calendar year 2017, the economy grew 1.6 per cent, against 0.9-per cent in 2016. Japans Minister for Economy, Trade and Industry Toshimitsu Motegi said the current expansion was solid compared with the more volatile bubble boom in the 1980s, according to Bloomberg News. Amid speculative investment in land and stocks on low interest rates, the Nikkei stock index hit almost 40,000 in 1989 -- nearly double its current level. The bubble burst at the start of the 1990s, ushering in a period of low or no growth known as the lost decades. The current period of growth is good news for Prime Minister Shinzo Abe, who has been trying to fire up the economy with his pro-spending policy dubbed Abenomics since he took office in late 2012. Junko Nishioka, chief economist at Sumitomo Mitsui Banking Corp., also said an uptick in income suggested the Japanese economy would expand further.