Markets Don’t Like Japan’s Strong GDP

While Japan clocked its fastest growth rate in over two years in the first quarter, economists warn it’s too early to pop the champagne.

The world’s third-largest economy grew at an annualized pace of 5.9 percent in the January-March quarter, well above 4.2 percent growth economists polled by Reuters expected, led by a surge in private consumption before the April 1 sales tax increase and stronger business investment.

However, the bumper gross domestic product (GDP) growth is likely to be followed by a second quarter slump as consumers rein in spending after the tax hike, experts said.

CNBC

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