Japan’s economic growth was stronger than expected between July and September.<br /><br /> A recovery in exports meant gross domestic product expanded again.<br /><br /> The world’s third-largest economy grew by 2.2 percent in the third quarter compared to the same period last year and well up on the 0.7 percent increase from April to June. <br /><br /> Exports grew 2.0 percent, the fastest gain in a year, but the increase was driven by potentially one-off factors such as a boost in shipments of smartphone parts.<br /><br /> In addition domestic spending was weak and it is unclear if it will improve which is increasing concerns about how sustainable that recovery is.<br /><br /> Trump policy uncertainty<br /><br /> Japan is export dependent and there is now a lot of uncertainty over those exports following Donald Trump’s victory in the US presidential election.<br /><br /> There are concerns about the possible derailing of a trade pact that is central to Prime Minister Shinzo Abe’s plans to revive growth, including kick-starting the export sector.<br /><br /> Trump has expressed strong opposition to the Trans-Pacific Partnership (TPP), a 12-nation agreement spanning some 40 percent of the global economy. The pact is now considered dead.<br /><br /> The US and Japan are the two biggest members, but the trade deal became a hot-button issue during the U.S. election campaign, with critics including Trump saying it would cost American jobs.<br /><br /> Businesses fret over #Trump victory – The Japan News https://t.co/mByA9V05U0#JapanEconomy #TPP #トランプ pic.twitter.com/myg7FFJaUf— The Japan News (@The_Japan_News) November 11, 2016<br /> <br /><br /> Bank of Japan optimistic<br /><br /> Bank of Japan Governor Haruhiko Kuroda maintained his optimistic view of the economy, saying it was on track for a moderate expansion as exports and output rebounded thanks to an expected improvement in the global economy.<br /><br /> But he acknowledged that private consumption was “somewhat lacking momentum” and making some companies hesitant to raise the prices of their goods and services – potentially delaying achievement of the central bank’s 2 percent inflation target.<br /><br /> The bank has said it is now looking at reaching that by March 2019 – four years later than its original target.<br />
