The July-September quarterly GDP expansion was the largest since the January-March quarter of 2007, pointing to the country's recovery from its worst post-war recession. But Deputy Prime Minister Naoto Kan, speaking to reporters, cautioned against too much optimism as the country continued to face severe employment, falling prices and other downside risks, Kyodo News reported.
The latest numbers, announced Monday by the Cabinet Office in its preliminary report, were far higher than the average 2.6 percent forecast in its survey, the report said.
In the latest quarter, consumer spending -- which makes up about 60 percent of Japanese GDP -- rose a real 0.7 percent from the previous quarter, for the second straight quarter of growth. The higher spending was credited to tax breaks on low-emission cars and a government reward program for purchases of greener consumer electronics.
Corporate capital spending rose 1.6 percent in the current quarter, the first increase in six quarters, the report said. Japanese exports rose 6.4 percent for a second straight quarterly gain.
Copyright 2009 by United Press International.
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