Japan's GDP up by 1.7% in Oct-Dec 2003

Japan’s GDP up by 1.7% in Oct-Dec 2003

Japan's GDP (Gross Domestic Product) increased by 1.7% in the October-December 2003 period from the previous quarter. The increase in GDP indicated the sharpest growth in the last 13 years. It is reported that the rise in exports to US and China and capital spending cotributed to GDP growth. However, Japanese economists expressed that deflation is still a huge problem for Japan and prices keep falling in 2004 and 2005. Another issue is the growing strength of the Japanese Yen which rose by 10% against the US Dollar in 2003. This increase could reduce the exports. But, the demand for Japanese goods as well as intervention by the government, has offset the effects of the increase.