Japan's economy keeps expanding
In the first quarter of 2016 Japan’s economy has managed to expand at the surprisingly fast pace, due to surging consumption. However, experts point out that the given rebound wasn’t strong enough to ruin concerns regarding this quarter’s contraction.
With private consumption contributing only to a feeble recovery from the last quarter’s tumble, the data definitely keeps alive expectations that the country’s prime minister is going to delay a planned sales tax increase next year.
During the period from January till March, the world’s third economy surged by 1.7%. It definitely surpassed a modest market forecast of a 0.2% expansion. The given soar fully compensated the previous quarter’s 1.7% contraction, according to Wednesday’s statement of the Cabinet Office.
Not so long ago financial analysts had worried that the January-March period would fail to generate enough growth to avert an approaching downtime.
Meanwhile, the GDP data will most probably make Abe delay a scheduled sales tax surge next year, rolling out extra fiscal stimulus instead.