TOKYO — The Japanese economy expanded at its fastest pace in at least 40 years in the July-September period as private consumption and exports improved along with the reopening of the global economy.
The world’s third-largest economy after the U.S. and China expanded 5% in the third quarter of 2020 from the previous quarter, the first growth in four quarters and the biggest expansion since 1980, the period for which comparable data are available. The result came after a record drop in the second quarter and was better than economists’ forecast.
On an annualized basis, which reflects what would happen if the third-quarter pace continued for a full year, Japan’s economy expanded 21.4%, compared with a consensus forecast of 18.9%. In the third quarter, the nation’s gross domestic product totaled an annualized 508 trillion yen, equivalent to $4.85 trillion, recovering a little more than half of what it lost in the coronavirus pandemic.
Private spending rose 4.7% from the previous quarter as consumers went out more for shopping and dining. Meanwhile, external demand added 2.9% to growth.
Economists say any further recovery is likely to be slow in coming quarters. The services sector remains weak owing to fears of infection, and the virus is spreading again in some countries.
@Newswires
