Japan’s GDP in the first quarter grew significantly above expectations – Kommersant
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Japanese government published updated data on the country’s GDP for the first quarter – it grew by 2.7% in annual terms. This is significantly higher than the preliminary data published in May (growth by 1.6%), and the expectations of analysts polled by Reuters (on average, they expected growth by 1.9%).
According to experts, this is due, among other things, to the post-pandemic growth in domestic consumption. “Despite the global economic downturn, the Japanese economy remains resilient – strong private consumption will continue to support growth,” said Takumi Tsunoda, senior economist at Japan’s Shinkin Central Bank research center.
At the same time, Mr. Tsunoda notes that growth in the first quarter is more related to the increase in stocks of companies than demand from end users, so the recovery may not be as sustainable as it seems according to published data. Many companies are ramping up investments, including in manufacturing, that were put on hold during the pandemic. The allocation of funds for capital investments increased by 1.4% in the first quarter.
At the same time, according to Norihiro Yamaguchi, senior economist at the American analytical company Oxford Economics, the stability of the Japanese economy in the face of a slowdown in the world as a whole may turn out to be short-lived. Opportunities for further growth, according to many analysts, will depend on wage increases by companies in the face of inflation – weak by global standards, but significant for Japan.
Read more about the Japanese economy in the publication “Kommersant” “There are yens in the safe harbor”.
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