Economy in Japan Shows Signs of Strength
TOKYO — Japan’s economy grew at a 6 percent annualized rate in the third quarter, signaling a strong recovery after the devastating tsunami in March. Still, a slowing global economy and a stubbornly strong yen cloud the outlook for Japan, the world’s third-largest economy.
Helped by a rebound in exports and consumption, the gross domestic product expanded 1.5 percent in the three months through September, compared with the previous quarter, numbers released by the Cabinet Office showed Monday. The widely expected uptick, equivalent to an annualized rate of 6 percent, was the first expansion in the Japanese economy in four quarters.
The rebound underscores the speed at which Japanese industry has been able to get back on its feet after the March 11 earthquake and tsunami, rebuilding factories and re-establishing supply chains severed by the destruction.
Exports jumped 6.2 percent as manufacturers got production back on track. Private consumption, which accounts for almost two-thirds of Japan’s economy, grew 1 percent, helped by a rebound in consumer sentiment and replacement demand in the tsunami zone.