Japan's economy is growing faster than expected.

VTV.vn - Figures released this morning show that the Japanese economy grew beyond expectations in the first quarter thanks to positive results in exports and consumption.

Japan's economy is growing faster than expected.

Figures released this morning show that the Japanese economy grew better than expected in the first quarter thanks to positive export and consumer spending results, although the outlook may face pressure from the Middle East conflict in the near future.

Japan's real gross domestic product (GDP) in the first quarter increased 2.1% year-on-year, significantly higher than the market forecast of 1.7%. Personal consumption and business investment both grew 0.3%, reflecting continued support from corporate profits and wages for the economic recovery. However, analysts warn that sharply rising energy prices due to conflict in the Middle East could dampen growth in the coming quarters, and may make the Bank of Japan (BOJ) more cautious about its interest rate hike plans.

In a related development, speaking to reporters at the G7 finance ministers' meeting on May 18 in Paris, Japan, Finance Minister Satsuki Katayama emphasized that the government is prepared to take "appropriate measures when necessary" amid the continued depreciation of the yen against the US dollar.

Ms. Katayama pointed out that the deteriorating geopolitical situation in the Middle East, along with speculative activities in financial markets, could be factors contributing to the weakening of the yen.

Previously, there were reports suggesting that the Japanese government intervened in the foreign exchange market on April 30th to halt the depreciation of the yen after the exchange rate exceeded 160 yen to 1 USD. Recently, the yen has continued to gradually depreciate against the USD, fluctuating between 158.67 and 158.77 yen to 1 USD in the morning trading session on May 18th in the New York market.

Source: https://vtv.vn/kinh-te-nhat-ban-tang-truong-vuot-du-kien-100260519133157638.htm