Japan economy has posted growth of 0.5 percent in the first quarter of 2017. Government data displayed on Thursday showed Japan’s fifth straight winning quarter and the longest expansion in more than a decade. The latest readings correspond to market expectations.
As per the statement of the Cabinet Office, exports of Japan boosted gross domestic product up from 0.3 percent in the last quarter of 2016. However, consumer spending remains unenthusiastic and there is a considerable decrease in money matters despite the efforts of the central bank in financial easing.
Private consumption picked up 0.4 per cent from the preceding quarter after zero growth and the 0.4 per cent rise in each of the two quarters before that
The growth rate and this increase are good news for the new Prime Minister Shinzo Abe, whose short and cooperating first term as Japan’s premier came directly after Koizumi.
Government scheme of financial easing and reforms to the economy pumped a stock market rally and fattened corporate profits.
But critics have not been sure about the plan’s success as heavily-indebted Japan struggles with low birthrates and a compressing labor force.
Still, the central bank and International Monetary Fund both recently raised their projections for Japan’s growth. According to analysts, improving global outlook with strong demand for Japanese smartphone parts, memory chips, and construction machinery have also played a part in this improvement.