Japan growth revised higher in first quarter
Japan's economy grew more than initially estimated in the first
quarter, data showed Thursday, with exports keeping a recovery on track
as signs emerged that domestic demand is strengthening. A fourth
straight quarter of expansion saw gross domestic product in the
January-March period grow at an annualised 5.0 percent, beating last
month's estimate of 4.9 percent and expectations of 4.0 percent. "The
data was stronger than expected," said Yoshiki Shinke, senior economist
at Daiichi Life Research Institute. "It confirmed that the growth trend
has continued."
And there were signs that Japan's domestic demand, hindered by
deflation and a drag on growth, may also be strengthening after private
and household consumption were both revised up from 0.3 percent to 0.4
percent. Consumer sentiment improved in May to a reading of 42.8 from
42.0 in April according to a survey of 6,720 households. Any reading
below 50 however means pessimists still outweigh optimists.
Analysts said data may show the recovery was starting to percolate
through the wider economy, good news for the government as it looks to
tackle the world's largest public debt mountain without derailing the
revival.
"Domestic demand is improving," said Hiroshi Watanabe, economist at
Daiwa Institute of Research. "Continued economic recovery should make
things easier for politicians to discuss improving fiscal conditions,"
he said.
The country has been stuck in the deflationary doldrums since March
2009 following the global economic downturn, as falling consumer prices
deter corporate investment and consumption.
Exports, particularly to emerging Asian markets such as China, are
driving Japan's recovery from recession but its dependence on them was
illustrated by their 0.9 percent contribution to the quarterly growth
figure of 1.2 percent.
TOKYO, (AFP)
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