Japan's economy grew an annualized real 0.2 percent in the July-September quarter, marking the fourth successive quarter of expansion, the government said in a report on Thursday.

In terms of inflation-adjusted gross domestic product, the Cabinet Office said the growth reflected a 0.1 percent increase from the previous quarter.

The office's preliminary reading came in lower than median economists' forecasts, however, and slowed markedly from a revised 1.8 percent expansion in the previous quarter.

"The overall results showed a moderate economic recovery because of an increase in domestic demand such as personal consumption, capital investment and public works," Economic and Fiscal Policy Minister Yasutoshi Nishimura told a press briefing on the matter.

The biggest component of the Japanese economy, private consumption, which accounts for around 60 percent of Japan's economy, increased 0.4 percent from the previous quarter, in the recording period, the figures showed.

Japan's consumption tax hike to 10 percent from eight percent on October 1, saw a last-minute spike in demand from consumers, with some buying fairly big ticket items like refrigerators and air conditioners before the hike.

But Nishimura claimed the rise in demand ahead of the tax hike was smaller than that seen in the previous consumption tax increase from five to eight percent in April 2014.

This was likely because, prior to the 2014 tax hike, demand started to rise notably six months in advance, economists pointed out.

This time around, however, hasty buying in the last month before the tax hike was stronger than expected, economists here explained.

Analysts also maintained that consumer demand in the period was likely also negatively impacted by a prolonged rainy season in July and August, which saw demand pushed back to September.

Capital expenditure, another barometer of domestic demand, rose 0.9 percent in the recording period, while public investment was up 0.8 percent, the office said.

Exports dropped 0.7 percent from the previous quarter, the office said in its latest report.

Nishimura also said that owing to spending by foreign visitors to Japan markedly dropping due to worsening bilateral ties between Tokyo and Seoul leading to a drop in South Korean visitors to Japan, services exports tumbled in the recording period, which pushed down overall exports.

Unadjusted for price changes, Japan's economy grew an annualized 1.2 percent, and a quarterly 0.3 percent, the Cabinet Office also said.

Tokyo stocks closed lower 
Tokyo stocks closed lower on Thursday after the release of weaker-than-expected growth data.

The benchmark Nikkei 225 index fell 0.76 percent, or 178.32 points, to 23,141.55, while the broader Topix index was down 0.94 percent, or 15.93 points, at 1,684.40.

(With input from Xinhua)