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Economics

Japan's Economic Growth Streak Set to Restart After Speed Bump

  • Business spending unexpectedly falls, private consumption flat
  • Economists expect growth to rebound in current quarter
Bloomberg business news
Sumitomo Mitsui's Kichikawa Sees Japan Economy Growing in Q2
Updated on

Japan’s first economic contraction in two years is expected to be only a speed bump on the road to further, yet slower growth.

The economy shrank in the first quarter at an annualized rate of 0.6 percent due to capital investment unexpectedly falling 0.1 percent and flat private consumption. Growth is forecast to resume in the current quarter as global trade and Japanese exports regain traction.