Japanese economy performing very well this fiscal quarter

[Aepsilons]

Japan has revised up its growth figures for the January-to-March period, due to stronger growth in business investment.

The Cabinet Office said the economy grew 1.6% during the period, up from its initial estimate of 1.5%.

That translates into an annualised growth rate of 6.7% - up from the initial figure of 5.9%. Many analysts had expected a downward revision.

Japanese consumers and businesses increased their spending during the period ahead of April's sales tax rise.

Japan raised the sales tax, also known as consumption tax, from 5% to 8% on 1 April - the first hike in 17 years.

The increased spending ahead of the tax hike boosted Japan's growth.

Private consumption accounts for about 60% of Japan's economy.

But analysts have warned that spending may taper off in the current quarter, in part due to the tax rise and the spending surge before the hike.

"Looking ahead, output will surely shrink this quarter as consumers rein in spending after the consumption tax hike," Marcel Thieliant, Japan economist at Capital Economics, said.

Data released last month showed that retail sales in Japan fell 4.4% in April, compared with the same period last year, as the effect of the tax hike began to be felt.

However, Mr Thieliant added that business confidence had been improving in the country "which suggests that any weakness should prove short-lived".



Reference: BBC NEWS

That translates into an annualised growth rate of 6.7% - up from the initial figure of 5.9%. Many analysts had expected a downward revision.

Thanks to the policies of PM Shinzo Abe.

 

[Skull and Bones]

Congratulations.

 

[Aepsilons]

Congratulations.

Thank you ! It is an auspicious sign, our economy increases as Japanese are becoming confident on our position.

 

[Bastion-P]

Congrats. Hope Japan rises back to its rightful position.

 

[Chinese-Dragon]

While America has fallen into negative growth rates, around -1% now.

This won't sit well, they may need another tactic to boost their domestic industries, and at who's expense? Pumping inflation into the rest of the world with the next round of QE, which would also devalue the dollar relative to other currencies?

 

[Aepsilons]

Congrats. Hope Japan rises back to its rightful position.

We forecast our economy to grow to 6.7 - 7% this year.

 

[terranMarine]

While America has fallen into negative growth rates, around -1% now.

This won't sit well, they may need another tactic to boost their domestic industries, and at who's expense? Pumping inflation into the rest of the world with the next round of QE, which would also devalue the dollar relative to other currencies?

You expecting another round QE?

 

[Chinese-Dragon]

We forecast our economy to grow to 6.7 - 7% this year.

I think you are mistaken.

The IMF forecast for Japan's economic growth in 2014 is 1.7%.

IMF Raises 2014 Global Growth Outlook - WSJ

For Japan, the IMF raised its growth forecast for the year by 0.4 percentage point to 1.7%

If you grew 1.6% in the last quarter, how can you possibly reach a 7% growth rate for the overall year?

 

[Aepsilons]

I think you are mistaken.

The IMF forecast for Japan's economic growth in 2014 is 1.7%.

IMF Raises 2014 Global Growth Outlook - WSJ



If you grew 1.6% in the last quarter, how can you possibly reach a 7% growth rate for the overall year?

That translates into an annualised growth rate of 6.7% - up from the initial figure of 5.9%.

 

[Kyle Sun]

We forecast our economy to grow to 6.7 - 7% this year.

7% growing ?

Are you kidding me !!!!!

 

[Chinese-Dragon]

That translates into an annualised growth rate of 6.7% - up from the initial figure of 5.9%.

Not the same thing:

OECD Glossary of Statistical Terms - Annualised growth rate (annualised rate of change) Definition

Annualised growth rates attempt to facilitate comparison of data for different time periods (e.g. years and quarters).

However, because the impact of any irregular is magnified, use of this form of growth rate presentation is not recommended, especially as the key headline series.

What we usually compare is the real growth rate for the year.

 

[Jlaw]

7% growing ?

Are you kidding me !!!!!

He misread the wsj report

 

[Aepsilons]

Our performance grew by 1.6%, meaning 1.6% more than expected, as in the estimate of 5.9%.

We expect similar or better performance in the next quarter.

We remain optimistic, you remain a detractor.

 

[Chinese-Dragon]

We remain optimistic, you remain a detractor.

It's not about being a detractor, it's about being realistic.

If China's growth rate this quarter is 7.5%, does that mean we will grow at 30% for the year?

 

[Kyle Sun]

Our performance grew by 1.6%, meaning 1.6% more than expected, as in the estimate of 5.9%.

We expect similar or better performance in the next quarter.

We remain optimistic, you remain a detractor.

Just to clarify

Do you mean Japan GDP will be 107% of last year ?