Japan’s economy grew much faster in the year’s first quarter than initially estimated, The Wall Street Journal reported.
A rise in capital spending by firms, along with solid exports to the United States and China, helped power the expansion of the world’s third-largest economy.
Gross domestic product expanded at an annualized pace of 3.9 percent in the January-March period, data released Monday showed.
The revised figure is substantially higher than a preliminary reading of 2.4 percent growth.
The pickup in the pace of recovery offers additional encouragement for Prime Minister Shinzo Abe, who came to power with a pledge of revitalizing the country’s economy with his “Abenomics” package of stimulus measures, featuring aggressive monetary easing.
The second straight quarter of expansion follows last year’s contraction, triggered by the first increase in the sales tax in 17 years.
The biggest lift to growth came from business investment, now estimated to have grown an annualized 11 percent in the three months instead of 1.4 percent, as service-based industries ramped up capital expenditure following the lead of the big exporters.
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