Tokyo: Data showed that the Japanese economy grew at a faster pace than expected in the first quarter, thanks to strong exports and consumption. This data will be one of the key factors the Bank of Japan will consider to determine whether the economy can withstand the energy crisis and will allow it to raise interest rates soon, perhaps as early as next month.
According to Yemen News Agency, data released on Tuesday showed that Japan's real GDP rose 2.1 percent year-on-year, exceeding the market consensus forecast of a 1.7 percent increase and a revised 0.8 percent rise in the previous quarter (October-December).
The data also showed that the growth, recorded for the second consecutive quarter in the world's fourth-largest economy, was supported by strong exports.
Private consumption and capital spending both grew by 0.3 percent compared to the previous quarter, indicating that strong corporate profits and steady wage increases are supporting the rise.
Analysts expect growth to slow in the coming period as the repercussions of the conflict in the Middle East intensify, causing unprecedented disruption to global energy supplies.