Japan’s economy, the third largest in the world, grew at a faster than expected pace in the first quarter led by robust private consumption and a rebound in exports on the back of the government’s radical policies to reflate the economy.
Real Gross Domestic Product (GDP) grew by 0.9 percent, bringing GDP growth on an annualised basis to 3.5 percent. It confirmed Japan’s exit from recession, with consumers spending more.
The data is seen as an early mark of success for Prime Minister Shinzo Abe’s bid to stimulate an economy that has been stagnant for almost two decades.
Abe’s policy, dubbed “Abenomics”, involves big government spending and aggressive central bank easing.
“The Japanese economy is on the right track to recovery,” said Hideki Matsumura, from the Japan Research Institute. “The economy is expected to grow further for now thanks to the impact of Abenomics.”
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