Japanese Econnomy shows 3.7% Growth in the last Quarter.

The Japanese economy, the worlds second largest has grown 3.7 percent in the last quarter, which was twice the economic forecast.

This is a timely growth as exports to the Asian market have helped US companies through the current slowdown.

In comparison the European Union grew by 0.3 percent whilst the US slowed down to 0.2 percent representing a 1 percent reduction from the third quarter.

According to David Cohen a director at Action Economics in Singapore the figures “certainly suggest that as long as the whole world doesn’t go over the edge, modest growth is still valid.”

The Nikeii 225 stock average has seen its quickest gain since March 2002, as it rose by 4.3% to 13,626.45 representing a six year high as well as the yield on Japan’s 10-year bond rising by 5 base points to 1.465 percent.

From the last quarter private consumption was up 0.2 percent and capital investment rose 2.9 percent due to increased demand from within Asia herself for the construction of new factories.

Exports also rose 2.9 percent from the previous quarter, as record sales within Asia countered the US slowdown. Net exports contributed to 0.4% of the reported growth.

However in nominal terms the economy actually grew an annual 1.2% in the last quarter, as it is rising oil prices that have boosted growth in real terms.

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