Japan upgraded economic outlook

The Japanese government upgraded its growth forecast on Monday for the first time in two months, a sign that growth is accelerating as exports and factory output are picking up. In its monthly report, the government led by Shinzo Abe raised its assessment of exports, industrial production and corporate earnings. The announcement of a record quantitative stimulus and determination to reach the 2% inflation target within two years already helped the country's exporters to recover. The nation's gross domestic product grew at an annualized pace of 3.5% in the first three months of the year, mostly helped by the increase in exports as the Japanese Yen has slumped to a 4-1/2 year low versus the U.S. Dollar. The latest figures are reflecting a sharp improvement from the 1% growth rate at the end of last year, and recovering from six months of contraction.

"We are implementing fiscal and monetary policies under Abe's administration, and this has set the stage for a V-shaped recovery," said Economics Minister Akira Amari said.

"Normally exports lead growth, but this time consumer spending is playing the leading role," Amari told a news conference after the government released its latest assessment of the economy.