News ID: 194377
Published: 1017 GMT June 09, 2017

Japan growth rate revised down

Japan growth rate revised down

Gross domestic product (GDP) expanded 0.3% in the first quarter, compared to 0.5% in last month's preliminary reading.

Gross domestic product (GDP) expanded 0.3 percent in the first quarter, compared to 0.5 percent in last month's preliminary reading, BBC wrote.

The annualized rate of growth was cut to 1 percent from the initial reading of 2.2 percent.

The data was weaker than expected and was due to an unexpected decline in oil inventories and private consumption.

Business investment increased though, rising by 0.6 percent in the quarter compared with the first estimate of 0.2 percent.

Japan's central bank meets next week and is now expected to keep policy unchanged following the latest data.

However, analysts say the outlook remains positive for the world's third-largest economy and that its recovery is set continue.

"Both retail sales and core household spending recorded strong gains in April, and industrial production finally surpassed the peak reached before 2014's sales tax hike," Marcel Thieliant from Capital Economics said.

"The current [economic] expansion already is the longest in more than a decade," he added.

Prime Minister Shinzo Abe has been pushing Japanese consumers and companies to spend more in the run-up to the Tokyo Olympics in 2020. Private consumption accounts for about 60 percent of GDP.

Exporters have been helped by a weakening currency, which has made their products more competitive and has boosted the value of profits earned overseas.

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