Japan logs longest phase of growth in 16 years

Private consumption in Japan which accounts for most of its GDP has declined despite growth in the third quarter

Private consumption in Japan which accounts for most of its GDP has declined despite growth in the third quarter

Japan's gross domestic product advanced a seasonally adjusted 0.3% on quarter in the third quarter of 2017, the Cabinet Office said in Wednesday's preliminary reading. Analysts polled by Reuters had forecast a 1.3 percent expansion.

That was shy of expectations for a gain of 0.4% and down from 0.6% in the second quarter.

Nominal GDP gained 0.6% on quarter - in line with expectations and unchanged from the previous quarter.

All in all, Japan's economy has been doing well lately, mainly on the back of surging exports including smartphone parts and memory chips.

Inflation remains flat, however, and companies have balked at raising base wages despite reaping record profits in recent years, anticipating that future demand will shrink as Japan's population ages and declines.

Economists expect growth to slow in 2018-2019, partly because of limits to factory, logistics and hiring capacity and partly because of a sales tax hike promised for October 2019.

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