Growth in Japan exceeds expectations

Japan’s economy grew by more than initially forecast in the January-March period. Japan’s GDP was revised up sharply, rising by 2.7 percent in the first quarter. According to government data, Japan’s economy grew by an annualized 2.7 percent in the first quarter, above previous estimates of 1.6 percent last month, as the economy continued to see strong spending. Economists had expected growth of 1.9 percent. The Japanese yen strengthened 0.14 percent against the U.S. dollar shortly after the release, rising to 139.98. According to the January-March GDP data, Japan’s economy grew by 0.7 percent from the previous quarter. The growth rate, initially forecast as 0.4 percent, was expected to be revised down to 0.5 percent. Private demand rose by 1.2 percent and domestic demand by 1 percent, while exports of goods and services fell by 4.2 percent. Imports also fell by 2.3 percent, according to revised government estimates.