Japan GDP grows at highest rate in 40 years

NHK -- Nov 16
Japanese government officials say the country's GDP had its biggest increase in 40 years in the latest quarter. The rebound follows a massive contraction due to the pandemic.

GDP surged by an annualized 21.4 percent in the July-to-September period. That's the highest growth rate since comparable data became available in 1980.

But it follows a historic plunge in the previous quarter amid fallout from the coronavirus.

Personal consumption, which accounts for more than half of Japan's GDP, grew by 4.7 percent quarter-on-quarter.

Government tourism subsidies boosted spending on travel and dining-out.

Exports also surged 7 percent as shipments of vehicles and auto parts to the US and China increased.

However corporate capital spending fell by 3.4 percent.

Residential investment was also down, dropping 7.9 percent.

Japan's economic minister noted that a resurgence of coronavirus infections would create risks for economic recovery.

Japanese Economic Revitalization Minister Nishimura Yasutoshi said "While preventing infection, the government must also support employment and businesses, and make the economic recovery more solid. We have to work to get the economy back on track for growth led by private demand."

Nishimura also said the government will act decisively to ensure recovery.