Japan’s economy grew more than the government initially forecast in the first quarter, helping Prime Minister Shinzo Abe to sustain confidence in his campaign to defeat deflation.
Gross domestic product expanded an annualized 4.1 percent, compared with a preliminary calculation of 3.5 percent, the Cabinet Office said in Tokyo today. The current-account surplus for April was 750 billion yen ($7.6 billion), the finance ministry said in a separate release. That was more than double the 350 billion yen median estimate of analysts.
Abe and Bank of Japan Governor Haruhiko Kuroda need to sustain confidence after a slide in stocks from this year’s May 22 peak and a rebound in the yen from a four-year low against the dollar. While BOJ policy makers are meeting today and tomorrow, they may have limited room to move after Kuroda said he will avoid “incremental” steps after unleashing unprecedented easing in April.
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