Japanese economic growth surges on strong exports and tourism

Japan’s Economic Growth Surges, Boosted by Exports and Tourism

TOKYO — Japan’s economic growth jumped at an annual pace of 6% in the April-June period, marking the third straight quarter of growth as exports and inbound tourism recovered.

Real gross domestic product, which measures the sum value of a nation’s products and services, grew 1.5% in the fiscal first quarter for the world’s third largest economy, the Cabinet Office said Tuesday.

The annualized pace shows what the growth would have been if what was marked during the quarter had continued for a year. The rate outpaced what analysts had forecast at 3.1% growth.

The latest quarter showed the strongest growth since October-December 2020, when Japan’s GDP grew 1.9% on-quarter, and 7.9% annualized rate.

Exports and Tourism Drive Growth

• Exports grew 3.2% in the three months through June, according to the government.
• Auto exports have grown lately, after a period in which they had stalled on the shortage of computer chips and other parts.
• Production was crimped because of social restrictions related to the COVID-19 pandemic.
• The return of tourism, as social restrictions eased and borders opened to inbound travel, also contributed to quarterly growth.
• Tourism revenue contributes to export growth in GDP data.

Challenges and Potential Policy Changes

1. Private consumption stalled, declining 0.5% compared to the previous quarter.
2. Public demand, which includes government spending, rose 0.3%.
3. Some analysts think signs of recovery will prompt Japan’s central bank to take action on a policy change and move toward higher interest rates.
4. The Bank of Japan has taken a super-easy monetary policy for years, at zero or below-zero interest rates, to jumpstart an economy beset by deflation.
5. Recent data show the economy may be gradually picking up and wresting itself out of stagnation and deflation.
6. High interest rates can make borrowing more expensive and contribute to a slowdown, just when the economy is starting to rebound.

Sustainable Development Goals (SDGs)

Japan’s economic growth aligns with several Sustainable Development Goals (SDGs) set by the United Nations:

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

The growth in exports and tourism contributes to job creation, economic development, and the promotion of sustainable consumption and production practices. Additionally, partnerships between Japan and other countries play a crucial role in achieving these goals.

“The data is likely to provide the Bank of Japan with more room for normalization, although the initial short-lived bounce in the Japanese yen seems to reflect some market expectations that patience from the central bank is still the likely stance,” said Yeap Jun Rong, market analyst at IG.

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

The article discusses Japan’s economic growth, which is directly related to SDG 8 – Decent Work and Economic Growth. It also mentions exports and tourism, which are connected to SDG 12 – Responsible Consumption and Production. Additionally, the article briefly mentions the Bank of Japan’s monetary policy, which can be linked to SDG 17 – Partnerships for the Goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 8.1: Sustain per capita economic growth
• SDG 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation
• SDG 12.2: Achieve sustainable management and efficient use of natural resources
• SDG 17.16: Enhance the global partnership for sustainable development

Based on the article’s content, the targets mentioned above can be identified. The article highlights Japan’s economic growth (SDG 8.1) and mentions the recovery of exports and tourism, indicating efforts towards economic diversification and sustainable consumption (SDG 8.2 and SDG 12.2). The mention of the Bank of Japan’s monetary policy also implies the need for global partnerships and cooperation (SDG 17.16).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Growth rate of real gross domestic product (GDP)
• Exports growth rate
• Inbound tourism revenue
• Private consumption growth rate
• Government spending growth rate
• Interest rates

The article mentions several indicators that can be used to measure progress towards the identified targets. The growth rate of real GDP reflects progress towards SDG 8.1. The exports growth rate and inbound tourism revenue indicate progress towards SDG 8.2 and SDG 12.2. The private consumption growth rate and government spending growth rate reflect progress towards SDG 8.1 and SDG 17.16. Lastly, interest rates can be used as an indicator of the Bank of Japan’s monetary policy and its impact on economic growth.

4. Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: abcnews.go.com

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