japans revised growth blows past expectations
Last Updated : GMT 11:42:15
Arab Today, arab today
Arab Today, arab today

Japan's revised growth blows past expectations

Arab Today, arab today

Arab Today, arab today Japan's revised growth blows past expectations

Japan's economy
Tokyo - AFP

Japan posted stronger-than-expected growth in the first quarter as a pickup in capital spending drove the world's number three economy, but some economists warn that the recovery could be short-lived.

The 1.0 percent expansion in January-March -- or 3.9 percent on annualised basis -- was sharply up from an initial estimate of 0.6 percent growth, according to the Cabinet Office figures.

The upbeat data is good news for Tokyo's efforts to boost the economy, but household spending remains stubbornly weak as the Bank of Japan struggles to push up prices in a bid to end decades of deflation.

Despite wage rises at big firms and a tighter labour market, convincing people to splash out on consumer goods has been a struggle after Japan raised sales taxes last year to help pay down a huge national debt.

The rise hammered consumer spending and pushed the economy into a brief recession. Japan limped out of the red in the last three months of 2014 with Monday's surprise figures offering some hope for a recovery.

"Capital spending is the last piece of the puzzle, with exports and consumption showing signs of recovery," said Atsushi Takeda, an economist at Itochu Corp.

"A sustainable economic recovery is starting."

Corporate investment rose 2.7 percent from the previous quarter, well above an initial 0.4 percent expansion.

The growth figures fell in line with the Bank of Japan's assessment that the economy was on the upswing, and they may push back any timeline for the central bank to launch more stimulus.

However, bank chief Haruhiko Kuroda has been forced to push back a timeline for hitting a 2.0 percent inflation target -- a cornerstone of Prime Minister Shinzo Abe's plan to kickstart the deflation-plagued economy -- although he insists that healthy price rises are around the corner.

- Uncertain demand -

The data on Monday contrasted with revised US figures that showed the world's top economy contracted an annualised 0.7 percent in the first three months of the year, with the impact of a ports slowdown and cautious consumer spending worse than originally estimated.

The US is a major market for Japanese exporters and despite the apparent strength of Monday's figures, they also raised a red flag as firms' inventories rose from three months earlier.

"This (inventory buildup) implies that the underlying pace of demand was not nearly as strong as the headline suggests," Marcel Thieliant from Capital Economics said in a commentary, adding that consumer spending and industrial output remained lacklustre.

"We... expect a sharp slowdown in GDP growth in Q2."

Separate data Monday showed Japan's current-account surplus made a six-fold jump to 1.32 trillion yen ($10.5 billion) in April, thanks to an improving trade picture and buoyant returns on company investments.

The figures mark Japan's broadest measure of trade with the rest of the world, including both goods and services, tourism and returns on foreign investment.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

japans revised growth blows past expectations japans revised growth blows past expectations

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

japans revised growth blows past expectations japans revised growth blows past expectations

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Saudis clear passenger flights

GMT 08:38 2017 Saturday ,25 November

Saudis clear passenger flights
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Germany's SPD says ready for talks

GMT 11:28 2017 Saturday ,25 November

Germany's SPD says ready for talks
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today 'Trash islands' off Central America indicate

GMT 20:19 2017 Friday ,24 November

'Trash islands' off Central America indicate
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Heidy underlines works like “Seventh Neighbor”

GMT 13:59 2017 Thursday ,23 November

Heidy underlines works like “Seventh Neighbor”
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 07:53 2017 Friday ,24 November

To Debate Ethics of Euthanasia

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday