Japan's Economy Grows 1.2% in Oct-Dec, Below Estimates

MarketsAssociated Press

TOKYO (AP) — Revised data show Japan's economy expanded at a slower than hoped for 1.2 percent annual pace in the last quarter of 2016.

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The figure released Wednesday was slightly higher than the preliminary estimate of 1.0 percent annual growth for the world's No. 3 economy. It was below economists' forecasts for growth of 1.4 percent or higher.

In quarterly terms, the economy expanded 0.3 percent in the October-December. The earlier estimate was 0.2 percent.

A slight increase in corporate investment appeared to be the main factor behind the slight upgrade.

There was no change in the estimate of 1.0 percent annual growth in 2016.

Prime Minister Shinzo Abe has struggled to deliver on promises of sustained, stronger growth as frugal consumers and companies have opted to save rather than spend more.