Growth in Japan beat expectations in the first quarter

The Japanese economy was reported to have grown above leading estimates in the first quarter of this year, with heavy investment by businesses.

The country’s economy expanded 0.7 percent in the January-March period from the previous quarter, according to data from Japan’s Cabinet Office. The economy grew 2.7 percent compared to the same period last year.

According to advance data from May 17, the country’s economy grew 0.4 percent in January-March 2023 compared to the previous quarter and 1.6 percent compared to the same period of the previous year.

The expectation of the final data in the markets was that the Japanese economy would grow 1.9 percent annually in the first quarter.

CONTINUED GROWTH IS EXPECTED IN THE SECOND QUARTER

In the first quarter, private consumption based on the service sector expanded 0.6 percent, while business capital investment rose 1.4 percent.

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.

Although Japan’s Cabinet Office revised growth data for the October-December 2022 period to 0.4 percent, the Japanese economy did not enter a technical recession, which is expressed as “the contraction of GDP for two consecutive quarters.” .

Economists noted that Japan, the world’s third-largest economy, is expected to continue growing in the second quarter, albeit at a slower pace. (AA)