TOKYO (AP) – The Japanese government said Tuesday that Japan’s economy grew at an annual rate of 2.1% in the January-March period, showing resilience despite rising energy prices due to: war in iran.
Japan’s real gross domestic product (GDP, the total value of a country’s goods and services) increased by a seasonally adjusted 0.5% from the previous quarter. This was the second consecutive quarterly increase. Annualized numbers indicate the growth or contraction of a quarterly rate over a one-year period.
Increased spending by consumers and businesses contributed to the better-than-expected performance. Increased government spending also supported the economic expansion.
According to preliminary figures from the Cabinet Office, personal consumption increased by 0.3% from the previous quarter, and at an annual rate of 1.1%. Public demand increased by 0.3% from the previous quarter.
japanese economy Contracted between July and September last yearafter that Achieved moderate growth from October to December The quarter-on-quarter ratio was 0.2%.
Major challenges are rapidly increasing for resource-poor Japan. crude oil price. Brent crude oil traded at about $70 per barrel before the war, but has recently climbed to nearly $110 per barrel.
The Strait of Hormuz, a key shipping route for oil exports from the Persian Gulf to Asia, has been effectively closed due to the war, pushing up prices. Japan is releasing some of its oil reserves and working to develop alternative routes.
In the latest quarter, Japan’s overall imports increased by 0.5% and exports increased by 1.7%.
There is a shortage of a petroleum-related product called naphtha, which is used in everything from bathtubs to plastics. grab the headlines In Japan.
Prime Minister Sanae Takaichi It pledged to work to ensure sufficient supply to continue growing. That would likely require significant government spending.
Analysts at the Japan Center for Economic Research said in a recent report that Japan is likely to maintain moderate growth, supported by artificial intelligence technology and increased spending on defense.
“The breadth of demand indicates high-quality growth conditions and could provide further evidence of rising inflation,” said Naomi Fink, chief global strategist at Amova Asset Management.
Rising energy costs are contributing to the rise in prices, and strong growth in the first quarter of this year could prompt Japan’s central bank to break away from years of keeping interest rates near or below zero and tilt toward higher rates.
Japan’s inflation rate is lower than the United States, but workers’ wages still lag behind price increases.
Tokyo’s benchmark Nikkei stock average, which has been at an all-time high in recent days, fell 0.6% in Tuesday morning trading.
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