Japanese economy expands for second straight quarter

Business | 20 May 2019 12:12 pm

Japan’s economy grew at an annual pace of 2.1 percent in the first quarter, marking the second straight quarter of expansion, according to government data released today.

The Cabinet Office said seasonally adjusted real gross domestic product, the total value of a nation’s goods and services, grew 0.5 percent in the January-March period from the previous quarter.

Healthy public investment and private residential investment helped boost growth during the quarter, according to the data, which is likely to be revised.

Harumi Taguhi of IHS Markit in Tokyo said one factor behind the better-than- expected results was that imports slowed as well as exports, which signals slowing internal demand.

“Extra holidays related to the new emperor, the Rugby World Cup and a lift in consumption ahead of an expected sales tax increase are expected to support consumption for some time,” he said.

But he noted that extra government measures may be needed to support spending after the tax takes effect. Japan is set to implement a sales tax increase from 8 percent to 10 percent later this year.-AP

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