Date
17 December 2017
Business investment helped propel Japan to 6.7 percent growth in the first quarter. Photo: Bloomberg
Business investment helped propel Japan to 6.7 percent growth in the first quarter. Photo: Bloomberg

Japan 1Q growth beat expectations

Japan beat growth expectations in the first quarter, mustering 6.7 percent expansion thanks to stronger-than-forecast business investment, Bloomberg reported Monday.

The Cabinet Office said the preliminary calculation was for 5.9 percent annualized growth. A sales-tax increase in April is expected to send the economy into reverse this quarter before it expands again in the following three months.

The government of Prime Minister Shinzo Abe is planning to introduce another sale-tax increase but it “may need to implement a supplementary budget to help the recovery”, Bloomberg reported Junko Nishioka, chief Japan economist at Royal Bank of Scotland Group Plc in Tokyo, as saying before the report. 

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