The Japanese Economy Strengthened By 21.4 Percent

The Japanese Economy Strengthened By 21.4 Percent

The Japanese economy strengthened by 21.4 percent year on year between July and September as it recovered from the pandemic shock. That's according to preliminary data released by the Japanese government office. The third largest economy in the world shrunk for three quarters in a row and was already in recession by the time the corona crisis broke out. Quarter-on-quarter, the Japanese economy grew by 5 percent in the three months to the end of September. Japan's economic growth data showed an improvement in private consumption and exports, including exports of cars and car parts. The country's economic recovery was expected, but analysts warn that it will not be enough to return to normal. "The Japanese economy was still in a serious situation during the COVID-19 pandemic during July-September," the government said in a statement. Junichi Makino, SMBC's chief economist for Nikko Securities, said data on gross domestic product developments reflected a half-way recovery and is expected to continue at a gradual pace. The Chinese government said the country's industrial production rose 6.9 percent in October from the same month last year, and China's retail sales rose 4.3 percent year on year. Asian stock markets also responded to good economic data from Japan and China, strengthening at the beginning of the week. Tokyo's main Nikkei 225 index strengthened by two percent to 25,906.93 points on Monday. The Hang Seng Hong Kong Stock Exchange index rose 0.5 percent, South Korean Kospi rose 1.9 percent and China's Shanghai Composite stock index improved 1 percent.