The Japanese economy recorded 1. 2 during the third quarter of the year, according to preliminary data issued by the Japanese government office today, Tuesday.
Economists have surveyed their opinions that have expected 1. 1 percent growth after growth by 4. 6 percent annually, according to modified data, at 3. 5 percent, according to initial data during the second quarter.
The Japanese economy shrinkage rate during the third quarter compared to the second quarter was 0.
3 percent, while analysts expected a quarterly growth growth at a rate of 0. 3 percent after its quarterly growth during the second quarter by 1. 1 percent, according to modified data, and 90. 9 percent according to initial data.
Despite the recent raising of Corona’s restrictions, the third largest economy in the world faces extensive pressure from inflammatory global inflation, overwhelming increases in interest rates around the world and the Ukraine crisis.
Exports grew by 1.
9 percent, but they overwhelmed the import bill, which means that the external demand put forward 0. 7 percentage points of gross domestic product.
The Central Bank of Japan insists on continuing the low interest policy, unlike the movements of all major central banks around the world, which led to the sliding of the yen to the lowest level in 32 years against the dollar, which led to an enlarged pressure of the cost of living through the high prices of everything from fuel to materials Food.
“The contraction was unexpected,” said Atoschi Takaida, the chief economist at the Itochu Institute of Economic Research, adding that the largest deviation was in imports.
Yesterday, the Governor of the Central Bank of Japan, Haruhiko Coroda, affirmed the bank’s continued policy of very low interest, in the midst of increased uncertainty over the global economy, resulting from restricting policies in other economies, while carefully monitors the impact of interest rates abroad, on financial markets.
In a speech to business leaders in the city of Nagoya, Coroda, Kormuda grabbed the Japanese news agency Kyodo news, from it, from the point of view that the recent rise in inflation, mainly driven by increasing the prices of commodities and weak yen, will not continue, even if the country witnesses an increase in the increase in prices by companies.
The central bank said that the targeted inflation at 2 percent should continue in a stable and sustainable manner, supported by a strong wage growth.
Although the basic inflation in Japan, the targeted threshold, has exceeded in the past few months, Koruda has ruled out the possibility of raising interest rates in the foreseeable term, as it is expected that inflationary pressure will be lower.
“The Bank of Japan is currently considered that it must continue in the policy of monetary facilitation, and thus support the power of economic activity,” Coroda said in his speech.
“By doing this, it aims to provide a favorable environment for companies to increase wages and achieve the goal of stabilizing prices in a sustainable and stable manner, accompanied by wage increases. “.
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