Japan’s economy grew faster than economists anticipated last quarter, reducing the risk of falling back into a recession even as deflation intensifies.
GDP rose at an annual 4.6 per cent pace in the three months ended December 31st, the Cabinet Office said in Tokyo today, more than the 3.5 per cent median estimate of economists surveyed. The GDP deflator, the broadest measure of prices in the economy, fell a record 3 per cent.
Exports led the expansion, aided by a global recovery that prompted manufacturers from Panasonic Corp. to Nissan Motor Co. to raise their profit forecasts this month.
The yen traded at 90.15 per dollar at 3:20 p.m. in Tokyo from 90.03 before the report.
The currency has gained 5 per cent in the past six months, eroding exporters’ earnings. The Nikkei
225 Stock Average fell 0.8 per cent, extending this year’s losses to 5.1 per cent.
The world’s second-largest economy expanded 1.1 per cent from the previous quarter, today’s report showed, more than the 0.9 per cent median estimate of economists surveyed.