Reflationary Policies in Japan Likely Boosted Country to 3.6 Percent Growth

Japan’s economy likely grew an annualized 3.6 percent in April-June to mark a third straight quarter of expansion, a Reuters poll showed, adding to growing signs the positive effect of premier Shinzo Abe’s reflationary policies is spreading.

The reading will give the government justification to go ahead with a planned sales tax hike next year, although the decision will take longer and involve many other factors given its political sensitivity, analysts say.

While growth will slow from 4.1 percent seen in the first quarter, it will be broad-based with a pickup in exports and capital expenditure adding to the strength in personal consumption, they say.

via Reuters

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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