 This is Japan's second-longest post-war growth period |
Japan's economy grew faster than expected in the first quarter of 2006 - prompting speculation that zero interest rates may soon end. Official data from the Bank of Japan showed that the country's economy grew by an annualised rate of 1.9% - nearly double what analysts had expected.
The bank said the economy was "expected to expand" after earlier saying it would "recover steadily".
But it added that it had no time scale for upping interest rates.
GDP rose 0.5% compared to the last quarter of 2005, Japan's Cabinet Office said.
'Long-lasting recovery'
Bank of Japan governor Toshihiko Fukui said there had been a balanced growth in domestic and external demand, and in both corporate and household sectors.
"As for the outlook, we think there will be an long-lasting recovery," he added.
"We used the word expansion, but that does not mean growth rate will keep rising. Rather, we mean that the rate of growth will slow as the economy is now becoming more mature."
Japan's economy is experiencing its second longest growth period of the post-war era.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 