TOKYO (AP) – Japan’s economy grew at an annual 1.0 percent pace in the July to September quarter, according to revised data that indicates the country dodged a recession.
Earlier estimates had shown growth for the world’s third-largest economy at minus 0.8 percent, the second straight quarter of contraction. Two consecutive quarters of contraction are considered a technical recession.
The revised growth estimate issued Tuesday shows stronger corporate investment and a slightly higher pace of growth in exports than earlier reported.
On a quarterly basis the economy expanded 0.3 percent from the previous quarter instead of contracting 0.2 percent as the earlier estimate showed.
“Upbeat business surveys and a rebound in industrial production suggest that economic activity will continue to recover this quarter,” Marcel Thieliant of Capital Economics said in a commentary.
He noted that the revised growth estimate raises the likelihood the Bank of Japan will not increase monetary stimulus soon, despite slow progress toward its goal of 2 percent inflation.