Japan raises GDP growth estimate for second quarter

DPA Updated - March 12, 2018 at 06:46 PM.

The Japanese economy grew at an annualised rate of 3.8 per cent in the second quarter from the previous period, the Government said on Monday, up from the preliminary estimate of 2.6 per cent.

The rise in GDP was in line with the 3.8-per-cent growth predicted by a poll of economists by the Nikkei business daily.

The Cabinet Office expanded at an annualised rate of 5.1 per cent, the first rise in six quarters, revised up from an initial estimate of a 0.4-per-cent decline.

The revised growth figures encouraged supporters of a planned sales tax increase from April 2014.

Opponents of the tax hike said the Government should first pull the nation’s economy out of 15 years of deflation.

Prime Minister Shinzo Abe said the GDP figure is one of key indicators in deciding whether to go ahead with the hike.

The Government plans to raise the current 5-per-cent sales tax to 8 per cent in April 2014 and to 10 per cent in October 2015.

The premier said he would make the decision after the Bank of Japan’s business sentiment survey, another key indicator, due out on October 1.

On Monday, the Government also said GDP growth in the January-to-March period was revised up to 4.1 per cent from 3.8 per cent estimated two months ago.

Published on September 9, 2013 06:06