Increased business investment in the final quarter of 2016 lifted Japan’s economic growth higher than initially reported. Third quarter growth came at annualised 1.2 percent however. The revised figure is still below the forecast prepared in mid- 2016 which anticipated growth at 1.6 per cent.
The lackluster growth underlines the challenges facing the Japanese government which, along with the Bank of Japan, has been struggling to reverse years of stagnation.
Japan’s economy grew for four consecutive quarters in 2016 but the latest survey of businesses shows deep concerns about prospects in the medium term due to rising uncertainty in world events now.