Japan reports economy grew 2.5 pct year-on-year in July-Sept

TOKYO (AP) — Japan reports its economy grew at a 2.5 percent annual pace in July-September, upgrading an earlier estimate of 1.4 percent growth.

The revision issued Friday reflects higher than expected business investment and rising inventories. In quarterly terms the world’s third-largest economy expanded at a 0.6 percent pace, twice the original estimate.

Private demand rose 0.3 percent from the previous quarter thanks to higher than earlier reported corporate investment and private inventories.

The estimate for the impact of net exports was unchanged. A revival in demand across the region and in other major markets has helped breathe new life into Japan’s recovery.

Prime Minister Shinzo Abe was expected later in the day to outline plans for longer-term efforts to support growth and productivity as the nation ages and its population declines.