Japan's economy grows more than expected on support from trade, capex
By Leika Kihara and Tetsushi Kajimoto TOKYO (Reuters) - Japan's economy expanded more than expected in the fourth quarter, extending its recovery from its worst postwar recession thanks to support from firm exports, consumption and capital expenditure.
By Leika Kihara and Tetsushi Kajimoto
TOKYO (Reuters) - Japan's economy expanded more than expected in the fourth quarter, extending its recovery from its worst postwar recession thanks to support from firm exports, consumption and capital expenditure.
However, the pace of recovery slowed from the blistering pace seen in the third quarter, underscoring the challenge policymakers face in keeping the economy afloat as new emergency measures to prevent the spread of COVID-19 hit demand.
The world's third-largest economy grew an annualised 12.7% in October-December, government data showed on Monday, marking the second straight quarter of increase and exceeding a median market forecast for a 9.5% gain.
It was a slowdown from a revised 22.7% surge in the previous quarter, when the economy got a lift from pent-up demand after a previous state of emergency was lifted in May.
For the full coronavirus-stricken year, Japan's economy contracted 4.8%, marking the first annual fall since 2009.
The growth translated into a quarter-on-quarter increase of 3.0%, the Cabinet Office data showed.
A global rebound in manufacturing activity gave exports a much-needed boost, making up for some of the weakness in domestic demand, the data showed.
External demand, or exports minus imports, added 1.0% point to fourth-quarter GDP growth, matching a median market forecast.
Private consumption, which makes up more than half of Japan's economy, rose 2.2% after a 5.1% increase in the previous quarter. That compared with market forecasts for a 1.8% gain.
Capital expenditure grew 4.5%, marking the first increase in three quarters, the data showed.
Japan's economy has gradually emerged from last year's initial state of emergency curbs thanks to a rebound in exports.
But the government's decision to roll out new restrictions from January has heightened the chance of another recession, clouding the outlook for a fragile recovery.
(Reporting by Leika Kihara and Tetsushi Kajimoto; Additional reporting by Kaori Kaneko; Editing by Chris Gallagher and Sam Holmes)
This story has not been edited by Firstpost staff and is generated by auto-feed.
also read
France, Germany to agree to NATO role against Islamic State - sources | Reuters
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
China's Xi says navy should become world class | Reuters
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.