Japan Revises Growth to Annual 4.1% in Boost for Abenomics
And everybody was expecting worse numbers. So much about "economical predictions"
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Japan’s economy grew more than the government initially estimated in the first quarter, helping Prime Minister Shinzo Abe to sustain confidence in his campaign to defeat deflation.
Gross domestic product expanded an annualized 4.1 percent, compared with a preliminary calculation of 3.5 percent, the Cabinet Office said in Tokyo today. Nominal GDP, which is unadjusted for changes in prices, rose 0.6 percent from the previous three months, leaving the economy 7 percent smaller than in the same period in 1997.
Stocks surged, aiding Abe’s efforts to maintain momentum as the government moves on to the “third arrow” of Abenomics, the growth strategy to accompany monetary and fiscal stimulus. While BOJ policy makers are meeting today and tomorrow, their policy moves may be constrained by Governor Haruhiko Kuroda’s pledge to avoid “incremental” steps after unveiling unprecedented easing in April.
“This is what Mr. Abe needs for major structural changes this year,” Martin Schulz, an economist at Fujitsu Research Institute in Tokyo, told Bloomberg Television. With a consumption-tax rise looming next year, the economy is in a “sweet spot” that gives the administration the window to pursue its growth agenda after July elections, he said.
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