Japan's economy emerged from recession and grew faster than expected in the first quarter as a post-COVID consumption rebound offset global headwinds, shoring up hopes for a sustained recovery.
But mounting signs of a slowdown in U.S., European and Chinese growth cloud the outlook for the export-reliant economy, heightening uncertainty on how soon the central bank can phase out its massive stimulus programme.
"But the economic recovery will be moderate as weak overseas demand will weigh on exports. It will be a tug-of-war between robust domestic demand and sluggish exports," he said. The growth followed a 0.1% fall in the final quarter of last year, which was revised down from a 0.1% rise. The decline marked two straight quarters of contraction, meeting the definition of a technical recession.Private consumption, which makes up more than half the economy, grew 0.6% in January-March from the previous quarter, as the country's re-opening from the pandemic boosted service spending. That beat forecasts of a 0.4% increase.
"Demand for goods isn't strong globally, so exports are weak. Industrial production is also soft, so we can't expect manufacturers to perform well ahead," said Toru Suehiro, an economist at Daiwa Securities.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Japan's wholesale inflation slows, may ease pressure on BOJJapan's wholesale inflation slowed for a fourth straight month in April as rises in raw material costs moderated, data showed on Monday, suggesting that consumer inflation will begin to ease back towards the central bank's 2% target.
Les mer »
Japan’s Goto: BoJ must respond nimbly to any change, downside risks to economyFollowing a joint meeting between the Japanese Cabinet Office and the Bank of Japan (BoJ) on Monday, the country’s Economy Minister Shigeyuki Goto sai
Les mer »
Japan's govt, central bank debate whether sustained exit from deflation is nearA meeting of the government's top economic council on Monday focused on whether recent rises in inflation and wage growth suggest Japan is approaching a sustained exit from deflation.
Les mer »
From Rahmbo to Rahm-bassador: How an unlikely diplomat has wooed JapanAmbassador Rahm Emanuel is known to be a hard-charging political operative, but in his first 15 months, Japan has embraced him — as Rahm-san, his excellency, the “undiplomat” and a darling of Twitter.
Les mer »
ChatGPT misidentified Japan's PM, digital minister says | Digital TrendsOpenAI's ChatGPT chatbot is impressive on many fronts, but it appears it needs to brush up its knowledge on world leaders.
Les mer »
President of Johnny’s, Japan Talent Agency, Apologizes for Alleged Sexual Abuses by FounderThe current president of Johnny & Associates, possibly Japan’s most fearsome talent agency, has formally apologized for sexual abuses allegedly committed by her uncle and agency founder, Joh…
Les mer »