Japan's economic growth faster than expected in January-March, in the year of solid private consumption and exports rise by Prime Minister Shinzo Abe (Shinzo Abe) active monetary and fiscal stimulus driven on the back of the fastest in expanding .
Thursday's Cabinet Office data show, however, business investment still to come, in order to ensure sustained economic recovery.
An increase of 0.9% from the previous quarter's gross domestic product (GDP), the expansion of 0.7 percentage points a Reuters poll of analysts' expectations in value. Converted to annual growth of 3.5% and 2.5% more than the same quarter in the United States.
Data - including the first full quarter since Shinzo Abe back to power in late December - is considered his plan to revive the world's third-largest economy, a comprehensive report card. Solid reading Shinzo Abe will help to maintain a high level of support, the House of Lords vote until July.
Revenue in the first quarter primarily reflected the higher expectations of the psychological impact of the increase in domestic demand behind. Analysts expect Abe hope to shake the economy, two decades of stagnation pickup in domestic demand and export earnings will be achieved ahead of schedule.
"It is a really strong personal consumption and export performance is better than expected stock returns and expectations of higher wages, stimulating consumption, said:" In Tokyo Sumitomo Mitsui Asset Management Company Muto, a senior economist at Hiroaki.
Private consumption accounts for about 60% of the economy, is expected to rise 0.9%, the second consecutive quarter, reflecting consumer sentiment, thanks in part to the buoyant stock market.
Export, helped by the yen against the dollar in four and a half low retreat, exceeded market expectations, 0.4% net contribution to GDP, despite the weaker currencies caused by the higher cost of imports.
However, capital expenditures disappointed, a decrease of 0.7% in the quarter, defying the expected increase of 0.7%, there are indications that Japanese companies to improve business sentiment remained cautious and hesitant, in order to improve the investment.
Unless the wheel in the summer bonus increase revenue enough to make up for the squeeze disposable income, consumer spending is likely to suffer from rising costs, energy and imported goods.
Shinzo Abe no commitment to reform as part of his three-pronged strategy to promote growth. However, the additional stimulus spending and Japan's plan to double its government debt held by banks has lifted the mood of consumers and businesses, sending the yen sharply lower, 70% of the share price and to promote, for the first time since November Shinzo Abe moved his economic plan.
Although this is far from clear whether Abenomics "will lead to continued solid growth evade the momentum of Japan in the past two decades, analysts expect the economy will remain in the current quarter, thanks to public investment, and a weak yen and recovery in the United States
"The economy will enjoy strong growth in the year or so it is no longer just brightening sentiment and stock prices rise there is proof Abenomics work and the economy has a solid foundation," said Yoshiki new home, a senior economist Tokyo Dai-ichi Life Research Institute.
 
 



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