Finally the Japanese have something to cheer about, marred by recalls problems of country’s largest automaker and aggravating deflation; the Gross Domestic Product increased by 1.1 per cent for the Oct-Dec 09 quarter, which translates into 4.6 per cent annualized. It was the third consecutive quarter of growth.
The GDP deflator – a measure of the price level of all new and domestically produced goods and services, fell a record 3 per cent, from the previous year, as against a 2.2 per cent decline initially predicted.
The initial estimate of third-quarter GDP missed by a mile, when the growth was revised zero from a growth of 4.8 per cent (annualized 1.3 percent) forecasted earlier, reflecting a change in how the Japan calculates exports and imports on a seasonally adjusted basis leading to wild variations in its GDP readings.
Last month, S&P expressed concerns over imploding debt levels in Japan and warned that the nation’s debt rating could be in danger. Taking a cue from rating agency, Japanese Finance Minister said the government will undertake a series of debates to overhaul the sales tax staring next month.