News Room - Business/Economics

Posted on 11 Jun 2008

Japan GDP Grew 1% in First Quarter,

The Japanese government said Wednesday that the economy grew at a faster pace in the first three months of 2008 than initially reported, largely because of stronger-than-expected capital spending. 

Real gross domestic product expanded by 1% on quarter in January-March, or 4% in annualized terms, revised data released by the Cabinet Office showed. That was better than the original estimate made a month ago of a 0.8% on-quarter increase, or annualized 3.3% growth.
 
The business-investment component was raised to a 0.2% increase from a preliminary 0.9% fall, suggesting that Japanese firms held up relatively well despite growing economic uncertainty world-wide.

But analysts say the strong numbers merely signal that Japan's six-year economic expansion may have peaked earlier this year. They expect the world's second-largest economy to shift into a lower gear because a downswing in the global economy and higher raw-material prices are likely to damp domestic demand.