TOKYO (TR) – Japan’s gross domestic product is forecast to grow at an annual 5.9 percent in the three months ended September 30 according to a Bloomberg News survey of 24 analysts.
The nations Cabinet Office is scheduled to release the report at 8:50 a.m. in Tokyo on November 14, Bloomberg reported. If the forecast is correct, the Japanese economy last quarter expanded at its fastest pace in more than a year, reversing three consecutive quarters of contraction, the news service said.
The expansion may be short-lived due to Europe’s debit crisis and the stronger yen, the Bloomberg report cautioned. “The rebound is going to lose momentum as sluggish overseas demand outweighs reconstruction — we’re a long way from seeing a sustained recovery,” Bloomberg cited Junko Nishioka, chief economist at RBS Securities, as saying.
The Bank of Japan intervened in the FOREX market on October 31 for the third time this year after the yen surged to a postwar high of 75.35 yen against the dollar. Publicly traded companies lost nearly $3.9 billion (301 billion yen) due to the currency’s record gains, Bloomberg News said, citing a report by credit research company Tokyo Shoko Research.
Japanese companies are still trying to recover from the production disruptions caused by the March 11, Great East Japan Earthquake and auto parts shortages created by the massive flooding in Thailand.