Japan's GDP grows 4.9 per cent, for fourth quarter in a row
20 May 2010
Japan, the world's second-largest economy's grew at an annual pace of 4.9 per cent in the January-March quarter, according to a preliminary report by the Japanese cabinet office, marking the fourth straight quarter of expansion, with buoyant exports and increased consumers spending.
Though the GDP grew 1.2 per cent compared to the previous quarter, the fastest pace of growth since the second quarter of 2009, it was below analysts' expectations.
In the January-March period, exports jumped 6.9 per cent from the previous quarter, while consumer spending rose 0.3 per cent, which accounts for roughly 60 per cent of GDP and corporate investment increased 1 per cent, according to report.
The GDP figures "reflect a steady recovery," and the government expects the improvement to continue, finance minister Naoto Kan said at a news conference.
But he also warned of continuing risks such as market volatility and deflation and called on the Bank of Japan to deal with falling consumer prices.
Japan's economic growth has been strengthened by global economic recovery and robust exports particularly to China and Asia, mainly of cars and electronics.
