TOKYO Ė Japanís gross domestic product grew at an annualized rate of 0.2 percent in the third quarter of 2019, mainly riding on increased real estate investment and public investment, the government said Thursday.
Between July and September, the worldís third-largest economy expanded by 0.1 percent compared to the previous quarter, according to data published by the Cabinet Office.
During the second quarter of this year (April-June), Japanís GDP experienced an annualized expansion of 1.3 percent, and 0.3 percent with respect to the previous quarter, according to official data.
Although this is Japanís fourth straight quarter of GDP growth, the figure is well below forecasts and represents a noticeable slowdown from the previous period.
The increase in real estate investment, of 5.7 percent year-on-year, was most notable during the third quarter of this year. With respect to the previous quarter, it increased by 1.4 percent.
Two other factors that contributed to maintaining growth in the Asian country were corporate capital investment Ė one of the key components of Prime Minister Shinzo Abeís government strategy to stimulate the economy Ė and public investment.
Business investment increased by 3.5 percent year-on-year during July-September and 0.9 percent from the previous quarter, while public investment increased by 3.4 percent and 0.8 percent, respectively.
Domestic consumption, which contributes almost 60 percent of the Japanese economy, grew by 1.4 percent year-on-year and 0.4 percent from the previous quarter, driven by increased demand just ahead of a hike in VAT in October.
However, these figures were overshadowed by a fall in exports, one of the major contributors in Japanís GDP, which decreased by 2.6 percent year-on-year and 0.7 percent quarter-on-quarter.
The slowdown in the economy of China, Japanís main trading partner, and the trade war between Beijing and Washington have had a visible negative impact on Japanese shipments, recording 10 straight months of year-on-year declines, according to the trade balance data that was published separately.
According to estimates by the Bank of Japan, which cut its economic forecasts at the end of its last monthly meeting in October, GDP would grow at an annual rate of 0.6 percent in 2019 and 0.9 percent by 2020.