The Strategist

Japan's GDP rises in Q1

05/17/2023 - 09:45

Japan's economy has been expanding at an annualized pace of 1.6% from January to March, marking the country's first expansion in three quarters, as a recovery in private consumption following the COVID pandemic countered adverse global trends. That was supported by official statistics made public on Wednesday.

The outlook for Japan's export-driven economy did, however, slightly weaken due to indications of sluggish economic development in the U.S., Europe, and China, which increased concern regarding eventual winding down of the Bank of Japan's enormous monetary stimulus measures.

Japan's GDP growth was well above the market's average forecast, which had assumed a 0.7% annual growth rate. According to revised data for the Q4, GDP was falling by 0.1% annually in the last three months of last year.

Private consumption, which accounts for more than half of Japan's GDP, rose 0.6% in the reporting period from the previous quarter with an expected growth of 0.4% as the lifting of coronavirus restrictions boosted spending on services.