Japanese economy expands 4.5% in Sept quarter

TOKYO/NEW DELHI: Growing at a faster rate than expected, Japanese economy expanded by 4.5 per cent in the three months ended September on the back of higher spending by corporates.

One of the world's largest economies, Japan was severely hit by the global financial meltdown in 2008-09 and continues to grapple with sluggish growth prospects.

The data released by the Japanese Cabinet Office today showed that national economy rose by 4.5 per cent on an annualised basis in the September quarter. Last month, GDP growth for the same period was pegged at 3.9 per cent.

The better-than-anticipated growth was mainly due to increased corporate expenditure.

Despite encouraging quarterly growth, there are mounting concerns that economic momentum might not continue into the fourth quarter. Japan is struggling with a soaring yen and falling prices.

Further, fragile recovery in developing markets such as the US and Europe are also hurting exports by Japanese firms.

As part of its efforts to bolster the sagging economy, the Japanese government in November had unveiled a staggering USD 61 billion stimulus initiative.

The global economy is itself witnessing a slow revival and growth is primarily led by emerging Asian economies including China and India.