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.
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