Japanese economy extends growth streak for 8th successive quarter
The world’s third largest economy, Japan, has managed to grow for the eight successive quarter which is also its largest successful run since the financial bubble of the late 1980s.
The country's Gross domestic product in the last quarter of 2017 rose 0.1 per cent from the previous three months. The growth, however, is lesser than the market expectations of a rise of 0.2 per cent. It also represents a slowdown from the 0.6 per cent in the preceding July-September quarter. At an annualised rate, Japan’s economy grew 0.5 per cent, also missing expectations.
However, Japan's Minister for Economy, Trade and Industry, Toshimitsu Motegi said that the current expansion was solid compared to the more volatile 'bubble' boom in the 1980s.
The Japanese economy has enjoyed a period of export-driven growth in assistance with a recovering global economy. A stronger growth in India, China, USA and other major economies has not only helped Japan's export manufacturers but also helped keep unemployment rate below 3 per cent.
However, with wage growth and consumption continually lukewarm, Japanese economy hasn't yet been able to breakout from deflation and a low wage hikes could derail the scenario of continuing growth.