The GDP of Japan has topped expectations, due to the unexpected increase that was higher than their expectations.

Japan’s growth beat the expectations in the July-September period.

The annualized 2.2 percent growth in GDP for the July-September period was driven by a 2 percent rise in exports.

The world's third-largest economy expanded at an annual rate of 2.2 per cent in the third quarter of 2016 on the back of a 0.7 per cent increase in April-June, preliminary estimates released by the Cabinet Office showed.

The growth rate was more than doubled compared to the second quarter and for a country like Japan where growth has averaged less than 1 per cent over the last two decades, the latest GDP figures could be seen as high.

Japan has been trying so hard to boost the colorless and flat economic growth rate and escape the trap of deflation, there is no certainty, and however, this will create a lasting growth momentum.

It was the third successive quarter that the economy registered an expansion.

Japan accounts for 5.9 percent of the world’s GDP.The economy expanded at a seasonally rate of 2.2% for the quarter, well ahead of the 0.9% increase expected.

The reason that pushed the GDP to rise was the increase in exports which was the fastest increase seen in a year. By contrast, exports were boosted by improved demand overseas, easing of China's slowdown. Unlike imports that decreased, they fell by 0.6% over the same period. Falling imports caused by yen gains, oil price declines and weak domestic demand.

Another reason why the GDP increased is because of the strength of the Japanese yen. “Household income gains are not strong enough to drive up private consumption, while the yen's gains are expected to undermine exports and capital spending gradually but surely." said Takeshi Minami, chief economist at Norinchukin Research Institute.

Japan’s government is pushing companies to increase their investment and wages at home so that the demand increases.

 

This growth in the GDP shows that Japan successfully avoided a recession. Although, the unexpected growth shows that the Japanese economy is shaking off the effects of a slowdown in China and a stronger yen.

Recent growth in nominal GDP, driven by higher prices, is one of the most encouraging signs of success.

 

The Japanese currency, which had been gaining strength through the year against both the dollar and the euro has eased off again since August. Japan’s economy grew but the dollar value decreased due to the Japanese yen’s weakness.Japan fell to 20th in dollar-based nominal gross domestic product per capita in 2015.

Japan grew about 6%, while the US economy expanded more than 16%.

"Some weakness can be seen in the current economy, but employment and wages are continuing to improve and moderate economic recovery is continuing," Economy Minister Nobuteru Ishihara said in a statement