TOKYO (AP) — Japan’s economy contracted less than previously thought in the last quarter, weathering the country’s latest big COVID wave with less damage than had been thought.
The Cabinet Office reported Thursday that the economy shrank at a 0.8% annual rate in July-September. That was better than minus 1.2% annual growth reported earlier.
In quarterly terms, the world’s third-largest economy contracted 0.2% instead of 0.3%.
Pandemic precautions eased in the late summer, allowing normal business activity and travel to resume after many months of on-again, off-again limits. Exports also were stronger than earlier thought, expanding 2.1% in annual terms, up from the earlier estimate of 1.9%.
Growth in the last fiscal year, which ended in March, also was revised upward to an annual 2.5% pace from 2.3%. The new data also showed corporate investment rose more than reported earlier.
The economy has picked up steam in the current quarter, as border controls were eased to allow foreign tourists to enter the country. But subdued demand from China and slowing growth in other major markets as central banks raise interest rates to counter inflation are expected to limit the pace of recovery.
Decades-high inflation poses another threat, undermining purchasing power and raising costs for both businesses and consumers in a country that depends heavily on imports. With the economy still in the doldrums, the Bank of Japan has shied away from the interest rate hikes being used to slow growth and relieve price pressures in the U.S. and elsewhere. That has weakened the Japanese yen versus the U.S. dollars, compounding the impact of higher costs for oil, gas and other commodities.
2022 is nearly in the books, and for many investors turning the page to a new year can’t come soon enough. Will 2023 be better for stocks? If history is a guide it will be.
In the 12 months following mid-term elections (the elections held in the middle of a president’s four-year term), stocks have performed well. This is typically because mid-term elections tend not to go well for the party that sits in the White House.
The reasons for that trend are not something that’s in our wheelhouse. We’re just looking at what it means for stocks. And what it suggests is that next year the markets could see a strong recovery…at some point. But as is frequently the case, you have to be in the right stocks.
That’s the focus of this special presentation. We’re taking a look at seven stocks that have a strong case to be made for growth in the coming year. And some of these stocks are offering a good entry point for investors right now.
View the Stocks Here .