Asia > Eastern Asia > Japan > Japan’s growth falls below expectations

Japan: Japan’s growth falls below expectations

2017/06/20

JAPAN yesterday posted lower-than-expected increase in the initial quarter, but official data still confirmed that the country saw its longest economic expansion in over a decade.

The world’s number three economy grew 0.3 % between January and March — or 1.0 % at an annualized rate — which was down from a preliminary 0.5 % increase estimate.

The unexpected downgrade was as well below market expectations for an upward revision to 0.6 % increase.

The amaze cut comes next the International Monetary Fund and World Bank both recently lifted their projections for Japan’s economy.

Still, the official figures as well meant that Japan saw its fifth straight quarter of increase in what is its longest economic expansion in over a decade.

The economy has been picking up steam on the back of strong exports as request for Japan-made products rises.

Investment linked to the Tokyo 2020 Olympics is as well giving the economy a shot in the arm.

“The new figures fell short of the projections, but we've not changed our view that Japan’s economy is on a recovery path,” said Yasuhiro Takahashi, a senior economist at Nomura Securities.

The downward revision was mostly due to firms working down their inventory stockpiles, curbing new production during the initial three months of the year, he said.

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