Japan’s economy avoids a technical recession

1Japan‘s economy avoided a technical recession in the three months to September, according to revised official numbers released on Tuesday.

Preliminary numbers released last month indicated the economy shrank at an annual pace of 0.8% during the period.

The preliminary figures meant it was Japan’s second consecutive quarterly contraction, which constitutes a technical recession.

However, the new data suggests the economy grew at annual pace of 1%.

2Japan, which is the world’s third-biggest economy, has been in recession four times since the global financial crisis.

On a quarterly basis, the latest economic numbers show gross domestic product (GDP) for the three months to September grew 0.3% – instead of initial report which showed a contraction of 0.2%.

Analysts said Tuesday’s numbers were stronger than expected.

“What’s more, GDP only shrank by 0.1% quarter on quarter [in the three months to June] instead of the earlier reported 0.2%,” said economist Marcel Thieliant of Capital Economics.

Mr Thielant said one reason for the revision was stronger business investment, which edged up by 0.6% instead of the preliminary reported 1.3% quarter on quarter fall.