 Japan's economy has been recovering after years of stagnation |
Japan saw its economy grow at a faster pace than previously expected in the three months to June, a sign that its economic recovery is under way. Japanese gross domestic product (GDP) grew at an annualised rate of 1%, compared with a preliminary figure of 0.8%, the Cabinet Office said.
"Domestic consumption coupled with private investment continue to be strong," the government said.
Japan's economy has been recovering recently after years of stagnation.
Decline unlikely
The Bank of Japan raised interest rates in July to 0.25%, ending its zero rate policy which had existed for 6 years.
However, even though the latest GDP figure was better than the government had previously forecast, it still fell below many analysts' expectations.
While capital expenditure was revised slightly downwards for the quarter, the data revealed that firms were investing at a level not seen in close to four years.
Exports fell, but analysts were not perturbed by the drop.
"Automobile exports edged down in June, because some manufacturers changed models, but recovered in July. It is difficult to see the economy going down in the near future," said Tatsushi Shikano, an analyst with Mitsubishi UFJ Research.
One-Minute World News 
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