Third-Quarter GDP Rises 2.5% in 2017 in Japan

The local government recently announced that the Japanese economy increased with a yearly real 2.5% between July and September of 2017, which represents a growth of seven consecutive quarters. In this article, our company formation consultants in Japan give more details on this news and the aspects related to this increase.

 

 

The increase of the real GDP, the total value of products and services produced in Japan adjusted for inflation, exceeded the average market forecast of 1.5% increase.

 

This was revised from an initial reading of 1.4% increase, adding more proof that the country still is on a constant growth. 

 

The government had previously stated that the longest run for development was for eight quarters, between April 1999 and March 2001.

 

However, the seasonal adjustment made the October-December quarter of 1999 to decrease in growth.

 

Bigger private capital expenses, mainly in the financial and services industries, as well as a rise in the private inventory investment in raw materials like oil made the revised data to increase. Our Japan company formation advisors can help entrepreneurs who are interested in starting a company in Japan in one these sectors.

 

The exports rose with 1.5% compared to the previous quarter among solid foreign demand, while the global economy attains traction.

 

However, private consumption, which plays a key role in the GDP, accounting for almost 60% of it, remained sluggish, with a 0.5% decrease compared to the previous quarter, while the spending on mobile phones and automobiles decreased.

 

 

The main points of the GDP report in Japan include:

 

• The GDP increased with a yearly 2.5% in the third quarter of 2017, while the initial estimations were of 1.4%;

• The business expenditures increased with 1.1% compared to the previous quarter, with an estimate increase of 0.4%;

• The private consumption decreased with 0.5%, the same as the preliminary reading;

• Other key points: our company registration agents in Japan can assist you if you would like to start a business here.

 

If you need to know more about Japan’s GDP growth in 2017, or to receive help in setting up a business in this country, please do not hesitate to get in touch with our friendly team of company formation representatives in Japan.