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Japan economy beats expectations of slowdown

Image copyrightGetty Images Japan's economy unexpectedly grew in the three months to March, shrugging off forecasts for the world's third largest economy. The economy grew at an annualized 2.1 % in the period, preliminary gross domestic product (GDP) data showed. That beat analyst expectations for a 0.2% contraction, as imports fell faster than exports. The data was closely watched for any signals and planned sales rise could be delayed. The surprise expansion in the official GDP figure was fueled mostly by imports falling faster than exports. Imports wear 4.6% – the biggest fall in decade, according to Reuters – while exports dropped more than a 2.4%. "The surprising resilience of the economy at the start of the year that GDP growth will be stronger this year than we had anticipated, "senior Japan economist at Capital Economics Marcel Thieliant said. Mr. Thieliant also said that following the better-than-expected growth figures Japan" will press ahead with the sales tax hike scheduled for October 1 ". Some policy makers have a delay to the sales tax increase from 8% to 10% given a backdrop of uncertain domestic and global economic conditions. Prime Minister Shinzo Abe has already delayed the planned increase and uncertainties in the world economy – including slowing growth in China and its trade with the US – have prompted some concern that it may be delayed again. A quick guide to the US-China trade war How cherry blossom season boosts Japan's economy But the country's economy Minister Toshimitsu Motegi appeared…

 Japanese people cross a street in Shibuya

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Japan’s economy unexpectedly grew in the three months to March, shrugging off forecasts for the world’s third largest economy.

The economy grew at an annualized 2.1

% in the period, preliminary gross domestic product (GDP) data showed.

That beat analyst expectations for a 0.2% contraction, as imports fell faster than exports.

The data was closely watched for any signals and planned sales rise could be delayed.

The surprise expansion in the official GDP figure was fueled mostly by imports falling faster than exports.

Imports wear 4.6% – the biggest fall in decade, according to Reuters – while exports dropped more than a 2.4%.

“The surprising resilience of the economy at the start of the year that GDP growth will be stronger this year than we had anticipated, “senior Japan economist at Capital Economics Marcel Thieliant said.

Mr. Thieliant also said that following the better-than-expected growth figures Japan” will press ahead with the sales tax hike scheduled for October 1 “.

Some policy makers have a delay to the sales tax increase from 8% to 10% given a backdrop of uncertain domestic and global economic conditions.

Prime Minister Shinzo Abe has already delayed the planned increase and uncertainties in the world economy – including slowing growth in China and its trade with the US – have prompted some concern that it may be delayed again.

  • A quick guide to the US-China trade war
  • How cherry blossom season boosts Japan’s economy

But the country’s economy Minister Toshimitsu Motegi appeared to indicate that the plans for higher sales tax remained on track.

“There is no change to our view that the fundamentals supporting domestic demand remain solid,” Mr. Motegi told reporters, according to Reuters.


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