"There's now proof that Abenomics is working and that the economy is on a solid footing."
- Yoshiki Shinke, senior economist at Dai-Ichi Life Research Institute
Japan's economy grew at a faster-than-expected pace in the first quarter of 2013, driven by export gains and higher household consumption. According to the Cabinet Office, gross domestic product rose 0.9% in the January-March period from the previous quarter, while on an annual basis GDP grew 3.5%, overshooting economists expectations of a 0.7% quarter-on-quarter increase and a 2.8% annualized growth. Private consumption, which makes up 60% of GDP, contributed 2.3 percentage points to the advance.
"This is undoubtedly very strong growth, and very positive for Japan's economy," said Yoshiki Shinke, senior economist at Dai-Ichi Life Research Institute in Tokyo. "It's no longer just about brightening sentiment and rises in equities prices. There's now proof that Abenomics is working and that the economy is on a solid footing."
"Japan is clearly back from stagnation last year," said Naoki Iizuka, an economist at Citigroup Inc. "The key from here is whether Abe can unveil a strong growth strategy. If he succeeds, that will boost business investment to support growth."
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