Written by John Benjamin 

Economic activity in Japan accelerated in the third quarter, according to official data released last week. Data showed that Japan’s economy expanded at a faster than expected pace, rising 2.5% in the third quarter.

This was higher than the previous estimates and the gains came as capital spending from businesses surged amid rising optimism about an upturn in the global economy and trade.

Japan GDP Growth Rate: Q3 2017 – 0.6%. Source: Tradingeconomics.com

The increase of 2.5% annual GDP growth rate in the three months ending September was upbeat and allayed fears of a slowdown in the economy. Japan’s economy, which is the third largest, continued to grow marking a winning streak of steady growth for seven straight quarters. The increase in the economic activity comes amid Japan’s PM Shinzo Abe and BoJ’s Kuroda’s efforts to revive the economy and to re-inflate inflation.

Previous estimates put Japan’s economy growing at a pace of 1.4% in annualized terms. The economy was seen expanding at a pace of 0.6% on a quarterly basis which was higher than the previous estimates of a 0.5% increase on the quarter.

Part of the gains in the economic expansion was also attributed to the efforts taken by Abe to end years of sluggish growth. Considered to be one of the most aggressive monetary policies, growth was also fueled by the BoJ’s monetary stimulus program.

Exports were seen rising as well as corporate profits which posted record growth. The GDP data was seen fueled by the increase in capital spending as well.