Japan’s GDP grows 4.1 per cent in Q1
17 May 2012
The Japanese economy registered a higher-than expected annualised growth of 4.1 per cent in the first quarter of 2012, buoyed by reconstruction spending, domestic demand and rise in exports.
The GDP data released Thursday reveal that domestic consumption and government's reconstruction spending following last year's devastating earthquake and tsunami are powering the economy amid mounting concerns of the European debt crisis and the Greek turmoil.
The growth was well above the 3.5-per cent expansion forecast by economists.
Japan's economy minister Motohisa Furukawa told reporters that despite the quake and tsunami and a strong yen last year, the nation's economy is continuing its upward movement.
"Gradual growth is likely to continue in the April-June period and afterward, as reconstruction demand will underpin the economy. But we need to be mindful of risk factors such as re-intensification of Europe's sovereign debt crisis," Furukawa said.
On a quarterly basis, the economy grew 1 per cent in January-March over a flat October-December quarter, higher than analysts' expectations of around 0.9 per cent. The economy is further estimated to grow 1 per cent in the second quarter on continued public spending.
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