Japan’s economy grew twice as fast as originally estimated in the third quarter, thanks to a business spending splurge and buoyant exports, supporting the central bank’s recent signals that it will shift away from crisis-era policy. The world’s third-largest economy grew an annualised 2.5% in July-September, revised data showed on Friday, handily topping forecasts and beating the preliminary reading of a 1.4% expansion.
The better growth numbers were bolstered by a significant upgrade in capital expenditure, driven in part by a surge in tourism following the government’s eased visa requirements this year. They also mark seven straight quarters of expansion, the best uninterrupted run of growth since 1994.
“You can say ‘Abenomics’ is doing well and producing results. Monetary policy is contributing to nominal growth,” said Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities, referring to Prime Minister Shinzo Abe’s aggressive economic stimulus policies.
