Economics
Japan Chalks Up Best Winning Streak Since 2001 on Export Boost
- Business investment expands for a fourth straight quarter
- Bad weather curbs growth by weighing down consumption
This article is for subscribers only.
Japan’s economy grew for a seventh straight quarter, its longest expansion since 2001, as a recovery in exports and rising business investment offset a decline in consumer spending.
The economy continues to expand at above its potential growth rate (0.5-1.0 percent) after more than four years of fiscal stimulus under Prime Minister Shinzo Abe and massive monetary easing from the Bank of Japan. Even so, inflation remains stubbornly low. Economists are watching closely for signs that the tightest labor market in decades is beginning to bring the needed higher wage gains and accelerate consumer price gains. In the meantime, external demand in the form of exports is playing a key role for growth.