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Japan’s economy rebounds in Q3

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Miguel A. Rodriguez
Miguel A. Rodriguez
16 November 2020
The GDP expanded at a record rate in the past quarter

Japan seems to be recovering from the pandemic, given the promising GDP increase reported in the last quarter.

In Q3 2020, Japan’s GDP grew at the fastest pace ever recorded. The increase shows a recovery from its most significant plunge caused by the COVID-19 pandemic. The world’s third-largest economy expanded 21.4% on an annualized basis, topping the 18.9% forecasted. Also, it was the first increase reported in four quarters.

The increase came after a 28.8% plunge reported in Q2, and since 1980 when the record started. The significant surge was due to private consumption, which increased by a record of 4.7%. Moreover, the exports reported a 7% surge.

However, the economy minister Yasutoshi Nishimura announced that the country still has more than 30 trillion yen of the negative output gap. A new stimulus package is in the works to cover the gap.

For the future, analysts expect the economy to contract 5.6% in the fiscal year ending March 2021.

Following the news, the country’s benchmark Japan225 edged 0.8% higher.

Read here all about the GDP increase reported by the British Office for National Statistics!

Sources: reuters.com, japantimes.co.jp

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.