Car, Cigarette Sales Spur Surprise Economic Growth In Japan

Lawrence Mijares – AHN News Contributor

Tokyo, Japan (AHN) – Japan has posted a surprising 0.9 percent in its gross domestic product for the third quarter of July to September, up from the previous 0.4 percent in the second quarter.

The surge, reported Monday, was mainly attributable to consumer spending on “green” cars before the government subsidy expired in September and on cigarettes before an expected tax rise.

Analysts, however, believe this to be a last minute boost on a slowing economy as they expect the GDP to fall in the next two quarters due to declining export revenue and a weak production sector.

The high value of the yen also continues to adversely affect Japan’s exports, making the product shipped overseas more expensive, discouraging sales and reducing revenue for Japanese exporters.

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