Japan ups growth rate

June 8th, 2012 - 1:05 pm ICT by IANS  

Tokyo, June 8 (IANS) Japan Friday raised its economic growth to 4.7 percent for the January-March quarter from the previous 4.1 percent.

The real GDP figure for the period is equivalent to a 1.2 percent expansion from the previous quarter, higher than a growth of 1.0 percent reported earlier, the Cabinet Office said.

While the earlier figure had beaten the average market forecast, the upgrading revealed a steady recovery from the quake-tsunami disaster of last March which hit the nation’s export sector by smashing the supply chains of manufacturers and destroying factories, Xinhua reported.

The world’s third largest economy was also battered by the appreciating yen, which eroded the profits of companies reliant on exports, and the massive flooding in Thailand that affected the production capability of Japanese manufacturers.

Due to strong GDP growth figure, Japanese government raised its overall view of economy for the first time in nine months in May. The Cabinet Office said that the economy is running on a track to recovery at a moderate pace. The upward assessment was attributed to the pickup on reconstruction demand, expanding consumer spending and exports.

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