Japan beats forecasts with 3.5% growth in Q1

The Japanese economy grew faster than any other G7 country in the first quarter of the year, reflecting the benefit of Prime Minister Shinzo Abe's expansionary policies.

In Q1 2013 Japan's GDP expanded by 0.9% quarter-on-quarter or 3.5% in annualised terms, marking the second consecutive quarter of growth after six months of contraction in 2012. The figures thwarted analysts' expectations, which stood at 0.7% quarter-on-quarter, according to a poll conducted by Reuters, and 2.7% annualised. Japan has seen solid growth in consumer spending and exports, helped by the weaker domestic currency. Abe's policies have helped to drive the yen down to a five-year low against the dollar, currently trading at 102.4, having fallen by over 20% since he took over...