Japan third quarter growth slows, reinforcing need for structural reforms

~~TOKYO - Preliminary Q3 GDP in Japan slowed to 1.9% saar from 3.8% in Q2, dragged down by sluggish exports and weaker-than-expected private consumption and investment. Growth would have been much worse were it not for a pickup in public investment spending.

The numbers show that despite the substantial fiscal and monetary stimulus under Abenomics, the pickup in growth remains fragile, and sustaining the improvement will require steadfast implementation of structural reforms, the “third arrow” (ATI).