The World Economy... - 21/5/2010

Japan’s Economy Grew At A Faster Pace In The 1Q

Japan’s real GDP grew at a faster annualised rate of 4.9% in the 1Q, compared with +4.2% in the 4Q of last year. This was on account of a stronger growth in exports, which surged by 30.5% in the 1Q, after a gain of 25.2% in the 4Q. A turnaround in residential investment, which grew by 1.1% in the 1Q, the first increase in five quarters and compared with -10.3% in the 4Q, also helped. Indeed, a sustained pick-up in exports has encouraged businesses to invest and increase labour force, which in turn translated into a firmer consumer spending. Nevertheless, business spending eased to 4.2% in the 1Q, from +5.1% in the 4Q. Similarly, consumer spending slowed down to 1.3%, from +2.7% during the same period.

The World Economy... - 21/5/2010