Japanese economy is growing at 3.9 per cent stronger than expected – Reuters Germany

Tokyo (Reuters) – The Japanese economy is at the beginning of significantly stronger growth than previously expected.

Gross domestic product (GDP) was projected in the first quarter over the year grew by 3.9 percent, the government in Tokyo said on Monday. An initial estimate of mid-May had put only 2.4 percent increase in prospect. In particular, the investments of companies have advanced more strongly than initially calculated, it said. The new numbers reinforce the view of the Japanese central bank that the economy is gaining momentum after the recession in the past year.

Japan suffered for years under falling prices across the board, what revenues and wages pressed. To end this deflation, the central bank pumped a lot of cheap money in the market. This also weakens the domestic currency, which Japanese products to key export markets are cheaper.

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