Japan’s economy grew more than expected

The Japanese economy grew faster than expected in the first quarter of this year and emerged from technical recession, which is expressed as “two quarters of GDP contraction.”

The country’s economy expanded 0.4 percent in the January-March period from the previous quarter, according to data from Japan’s Cabinet Office. The economy grew 1.6 percent compared to the same period a year earlier. Market expectations were for the Japanese economy to grow 0.1 percent in the first quarter compared with the previous quarter and 0.7 percent annually.

TECH IS OUT OF THE RECESSION

Japan, the world’s third-largest economy, contracted in the third and final quarter of last year and entered a technical recession, expressed as “two-quarters of a GDP contraction.” With growth of 1.6 percent in the first quarter, the country emerged from the technical recession.

In the first quarter, private consumption focused on the services sector expanded 0.6 percent, while business investments increased. The increase in domestic demand offset the negative impact of the 4.2 percent drop in exports of goods and services in the first quarter.

Japan’s Economy Minister Shigeyuki Goto said in a statement on the subject that Japan’s nominal GDP hit a record 570.1 trillion yen ($4.1 trillion), partly thanks to rising prices. . (AA)