Japan's Economy Shows Signs of Growth, Despite Political Uncertainty
Japan's economy grew at an annual rate of 0.9% in the July-September period, marking the second consecutive quarter of expansion. This growth was driven by strong consumer spending, which increased by 3.6% on the back of healthy household consumption.
The weakening yen also provided a boost to exports, which grew by 1.5%. However, the impact was relatively limited due to the yen's recent appreciation.
Despite these positive signs, Japan's economy faces several headwinds. Political uncertainty remains high, with Prime Minister Shigeru Ishiba facing a runoff election this week. Additionally, Japan continues to struggle with years of deflation, although inflation has recently risen to 2.5%.
Market watchers are also focused on the Bank of Japan's next move on interest rates. The bank has kept rates at zero or below zero for years to combat deflation, but is gradually raising them.
Overall, Japan's economy shows signs of growth, but political uncertainty and deflation remain concerns. The Bank of Japan's next move on interest rates will be closely watched in the coming months.