Japan’s economy has shown signs of modest recovery in the third quarter, supported by strong export performance and increased consumer spending. The yen, however, has weakened to a 34-year low against the US dollar, raising concerns about import costs and inflation.
Government data shows a 1.2% GDP growth between July and September, driven by electronics and automobile exports. The weaker yen has made Japanese products more competitive globally, but households are facing higher food and fuel prices.
Economists suggest that the Bank of Japan may need to revise its monetary policy to stabilize the currency. Despite challenges, Japan’s finance minister stated that “the fundamentals of the economy remain strong.”
