Japan’s Q1 0.9 Percent GDP Growth Validates Abenomics

Japan’s economy, the third largest in the world, expanded at its quickest pace in a year, showing signs of an economic recovery.

Gross domestic product grew 0.9% in the three months to March compared to the previous quarter, indicating an annualised rate of 3.5%.

Japan grew at a rate of 1% at the end of 2012 as it emerged from a recession.

Analysts said it was a good report card for Prime Minister Shinzo Abe’s aggressive stimulus measures.

“The Japanese economy is on the right track to recovery,” said Hideki Matsumura, from the Japan Research Institute.

He cited a jump in individual spending on the back of a rally in Japanese stocks, as well as recovering exports, as the main reasons.

“The economy is expected to grow further for now thanks to the impact of Abenomics,” Mr Matsumura added, referring to the name given to Mr Abe’s attempt to stimulate Japan’s stagnant economy with big government spending and aggressive central bank monetary easing.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza