Japan’s economy, the world’s second biggest, expanded at faster pace than originally estimated in the first quarter as consumers spent more amid signs of a broadening recovery.
GDP expanded at an annualized pace of 5 percent in the January-March quarter, revised up from 4.9 percent in a preliminary report last month, the government said yesterday.
The upward change surprised economists — who had forecast a downward revision — and underscores that recovery in Japan’s economy has been gaining momentum.
Underpinning its growth are exports of cars, consumer electronics and other goods to a surging Asia and China, which is poised to overtake Japan’s economy in size sometime this year.
The robust demand from overseas is leading to higher production, investment and earnings at Japanese companies.
The annualized figure corresponds to quarterly growth of 1.2 percent, which is unchanged from initial estimates.
The updated calculations by the Cabinet Office revealed stronger consumer demand and higher spending on housing, combined with a milder decline in government investment. Corporate capital expenditures grew a less-than-expected 0.6 percent instead of 1 percent.
The encouraging numbers, however, are tempered by persistent deflation and other negatives. Lower prices may boost individual purchasing power, but deflation is generally bad for an economy.
A lackluster labor market — unemployment rose to 5 percent in March, which is high by Japanese standards — and worries about a potential global fallout from Europe’s debt problems are also hanging over the economy.
Given Japan’s limited trade volume with the EU, potential stagnation in Europe is unlikely to pose a major direct threat to Japan, said Junko Nishioka, chief economist at RBS Securities Japan Ltd.
“However, we think the indirect influence via China will be the biggest risks for Japan’s exporters, along with market fluctuation,” she said in a note to clients.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from