"Japan's recession is over and the economy is heading to a recovery"
- Koya Miyamae, an economist at SMBC Nikko Securities Inc.
Japanese economy returned to growth in the last three months, according to the Cabinet Office. Nation's gross domestic product in annualized terms grew by 0.2% in Q4 through December, compared with a preliminary calculation of a 0.4% decline, up from previous quarter's 3.8% contraction. Compared with the previous quarter, GDP recorded no growth, an improvement on the initial estimate of a 0.1% contraction. The report also showed that Japanese current account deficit in January stood at 364.8 billion yen, posting third straight month of deficit. Latest data are adding to signs that the worst is over for the Japanese economy, as country's government as well as the Bank of Japan pledged to do whatever is necessary to stimulate the struggling economy.
"Japan's recession is over and the economy is heading to a recovery," said Koya Miyamae, an economist at SMBC Nikko Securities Inc. in Tokyo who accurately predicted today's GDP result.
"It's a good time to be BOJ governor because Kuroda can say Japan is making progress toward ending deflation when he adds more stimulus," said Miyamae of SMBC.
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