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20 May 2015
Japanese Q1 GDP beats expectations
FXStreet (Bali) - The first set of preliminary estimates for Q1 2015 real GDP saw the economy register a QoQ growth of 0.6%, above expectations of 0.4% for the first quarter. Meanwhile, Japan's GDP annualized came in at 2.4%, above forecasts of 1.5% in 1Q.
The data clearly shows a significant pick up in growth momentum, an encouraging sign that suggests the recovery is the country is gaining traction. The upbeat GDP reading should translate in higher consumer spending projections going forward, a much-needed contributor for the Bank of Japan's ultimate target of reaching a sustainable 2% inflation. The data should be viewed as a Yen positive input, as it lowers the odds for the Nippon Central Bank t embark upon fresh stimulatory policy actions near term.
The data clearly shows a significant pick up in growth momentum, an encouraging sign that suggests the recovery is the country is gaining traction. The upbeat GDP reading should translate in higher consumer spending projections going forward, a much-needed contributor for the Bank of Japan's ultimate target of reaching a sustainable 2% inflation. The data should be viewed as a Yen positive input, as it lowers the odds for the Nippon Central Bank t embark upon fresh stimulatory policy actions near term.