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 Japan jumping the gun?
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Friday, May 16, 2008 |
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It has been a good 3 months for Japan, but is the good fortune actually the kiss of death?
Japan's economy grew at a faster-than-expected pace in the first three months of 2008 as exporters weathered the global credit crunch. Gross domestic product in the world's second largest economy expanded at a 3.3% annual pace in the period, much higher than the 0.6% US growth rate.
Strong appetite for Japanese goods from China and other emerging markets offset weak demand from the US. But analysts warned that the global slowdown could hurt future growth.
Takeshi Minami, chief economist at Norinchukin Research Institute, was cautious about the figures: “The results appear a little too good to be true. The strong growth suggests there may be a backlash in the April-June quarter.
The official data showed the economy grew 0.8% from the previous quarter. It was the third consecutive quarter of growth.
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