Japan economy heats up in first quarter

shibuya crossingJapan’s first-quarter economic growth was stronger than first thought, revised data showed Monday, as Tokyo ushers in sweeping reforms and a mixed bag of monetary and fiscal policy.

Japan’s first-quarter economic growth was stronger than first thought, revised data showed Monday, as Tokyo ushers in sweeping reforms and a mixed bag of monetary and fiscal policy.

The world’s third-largest economy grew at an annualised rate of 4.1 per cent, up from a preliminary reading of 3.5 per cent, and surging ahead of many other industrialised nations struggling to stoke their economies.

“The upward revision… confirmed that the Japanese economy remains on a firm recovery track,” said Hideki Matsumura, senior economist with the Japan Research Institute.

The annualised data, which shows the level of growth if the data were stretched over an entire year, comes as economists sift through recent economic figures for signs an economy-boosting plan by Prime Minister Shinzo Abe and his hand-picked team at the Bank of Japan was taking hold.

The policy prescription of big government spending and aggressive central bank easing to stoke Japan’s limp economy, dubbed “Abenomics”, has helped push the yen into a steep decline which benefits Japan’s exporters.

Also Monday, the Cabinet office said revised figures for real GDP showed Japan’s economy grew 1.0 per cent in the first three months of the year, slightly better than preliminary 0.9 per cent growth.

“We expect the economy will continue to grow for now but consumer spending may be dampened in the current quarter after a sizeable adjustment in the Nikkei index,” Matsumura said, referring to a recent drop in the Tokyo stock market.

Also Monday, official figures showed Japan posted a surplus on its current account for the third straight month in April, as the weaker yen helped boost the value of income from overseas investments.

Japan’s surplus doubled on-year to 750 billion yen (US$7.6 billion) in its current account, the broadest measure of trade with the rest of the world, helping offset a widening trade deficit.

Japan’s import bills have soared in the wake of the Fukushima atomic crisis two years ago which saw Tokyo turn to pricey fossil-fuel alternatives after switching off the disaster-struck country’s nuclear reactors.

 

 

 

Source : Channel News Asia, AFP | 10 June 2013

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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