Japan’s pandemic-hit economy is growing at 40-year high, the government said on Monday.
The gross domestic product or GDP registered an unprecedented surge by annual 21.4% growth in the July-September quarter, NHK News reported.
It is the highest growth rate registered by the world’s third largest economy in at least four decades.
Rebound in the Japanese economy comes after the country witnessed a plunge of 28.1% in its annual growth amid the COVID-19 pandemic which has battered the world economy.
GDP is the total value of goods and services produced in a country.
The officials added that Japan’s personal consumption also grew by 4.7%. The personal consumption in Japan accounts for more than half of the country’s $5.71 trillion GDP.
The government launched subsidized intra-country tourism packages to boost spending on travel and dining-out.
The government data also showed a 7% surge in the country’s exports. Japanese shipments of vehicles and auto parts to the US and China have registered an increase in the past quarter.
Corporate capital spending and residential investment have witnessed a fall.
“While preventing infection, the government must also support employment and businesses, and make the economic recovery more solid. We have to work to get the economy back on track for growth led by private demand,” said Japanese Economic Revitalization Minister Nishimura Yasutoshi.
He warned resurgence in the coronavirus infections would “create risks for economic recovery.”
Japan has reported nearly 116,700 cases of the COVID-19 infections including 1,883 deaths since the outbreak.