Japan’s gross domestic product is estimated to grow 2.5 percent in price-adjusted real terms in fiscal 2013, the government said Thursday.
In nominal terms, GDP is projected to expand 2.7 percent, according to the government’s economic outlook for the year starting in April, adopted at the day’s extraordinary Cabinet meeting.
Japan’s gross domestic product grew at nearly double the U.S. rate for the first quarter, an unexpectedly strong sign of recovery in the wake of last year’s devastating earthquake and tsunami.
The Japanese government said that its GDP grew 1% in the first quarter, or an annualized rate of 4.1% for 2012. The GDP was driven by strong domestic demand, particularly by government expenditures.
“The economy accelerated despite the slowdown in the U.S. and China, indicating domestic demand likely accounted for a large share of the expansion,” wrote Marc Chandler, market strategist for Brown Brothers Harriman, in a research note.
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Asian stocks rose the most in a week and copper climbed after Japan’s economy grew for the first time in a year and the appointment of new governments in Greece and Italy damped concern Europe’s debt crisis will worsen.The MSCI Asia Pacific Index climbed 1.4 percent as of 1:03 p.m. in Tokyo, after losing 2.4 percent last week. Standard & Poor’s 500 Index futures increased 0.6 percent. The Nikkei 225 Stock Average gained 1.1 percent, poised for the biggest advance in a week. Copper rose as much as 3.9 percent. The euro strengthened 0.2 percent to $1.3774. Treasuries retreated after U.S. financial markets were closed on Nov. 11 for a holiday.“The situation in Greece has dramatically improved with the appointment of a unity government out there, and Italy looks like it’s getting close to a resolution,” said Angus Gluskie, who manages more than $350 million at White Funds Management in Sydney. “Two of the largest concerns of the market are being partially taken off the table.”
Read the rest of the story: Asia Stocks, Copper Rise on Japan GDP, Europe Leadership Changes.
Japan’s 12.1 trillion yen ($160 billion) extra budget for rebuilding northeast coastal areas devastated by the March 11 earthquake and tsunami will likely boost gross domestic product by around 1.7 percent, the government said on Friday.
The effect will be mostly felt in the fiscal year starting next April, mainly in the form of public spending, the Cabinet Office said.
The third extra budget for the year ending in March, submitted to parliament on Friday, earmarks 9.24 trillion yen for the reconstruction effort, including 2 trillion yen for subsidies and other steps to help companies cope with the strong yen.
Read the rest of the story: Japan’s reconstruction budget to boost GDP by 1.7 percent.