Japan's economy grows 1.7% in first quarter
According to the latest figures released, the Japanese economy recorded an annualized 1.7 percent during the first quarter of the year.
Cabinet Office data showed on Wednesday that the economy grew at 1.7 percent during the quarter compared to median market forecast for a 0.2 percent. The economy had contracted 1.7 percentin the previous quarter. The third-largest economy grew at its fastest rate in a year during the first quarter mainly due to a boost in consumption. The data showed that private consumption rose as households increased spending on televisions, food and beverages, and recreation. The private consumption had fallen 0.8 per cent in the previous quarter.
However, experts have said that there are still concerns of a looming recession in the economy. They pointed out that the recovery is not strong enough to dispel concerns of recession in the second quarter. The private consumption has made a small recovery from the fall in the previous quarter and there are expectations that the government of Prime Minister Shinzo Abe will delay a scheduled sales tax hike next year.
Chief Cabinet Secretary YoshihideSuga pointed out that the Japanese economy is steadily progressing in defeating deflation but private consumption continues to remain in the economy with the impact of an increase in sales tax in 2014.