TOKYO, JAPAN – SEPTEMBER 19: A general view of the Tokyo Tower and city on September 19, 2019.
Clive Rose – World Rugby | World Rugby | Getty Images
Japan’s economy grew an annualized 2.7% in the first quarter of the year, expanding further than earlier estimates of 1.6% made last month, government data showed, as the economy continues to see robust spending.
Economists surveyed by Reuters had expected to see growth of 1.9%. The Japanese yen strengthened by 0.14% to 139.98 against the U.S. dollar shortly after the release. Quarter-on-quarter, the economy expanded by 0.7%, beating estimates by Reuters of 0.5%.
Private demand rose by 1.2% and domestic demand rose by 1%, while exports of goods and services dropped 4.2%. Imports also fell 2.3%, revised government data showed.
The upside surprise for Japan’s economic growth comes as stocks remain in focus after recently notching new three-decade highs.
Private spending has also been in focus. Local media Kyodo reported Wednesday that the government plans to cut “crisis-mode spending,” according to a draft of its latest full-year economic blueprint.
The blueprint also reiterated Prime Minister Fumio Kishida’s plans to achieve economic growth alongside wage hikes as part of his drive to accelerate wealth redistribution, Kyodo reported.
It also included measures that aim to restore fiscal health, Kyodo reported, such as encouraging companies to offer higher wages and further invest in human resources.
The Bank of Japan’s next two-day monetary policy meeting is scheduled for next week.
This is a breaking news story. Please check back later for updates.
