Japan's economy grows at fastest pace in 2 years

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Aug 15, 2017 06:00 am

TOKYO: Japan's economy expanded at the fastest pace in more than two years in the second quarter as consumer and company spending picked up, highlighting a long-awaited bounce in domestic demand.

The world's third-largest economy expanded by a much stronger-than-expected annualised rate of 4 per cent in April-June, posting its longest uninterrupted run of growth in a decade, government data yesterday showed.

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Activity is expected to continue to improve in coming quarters, offering the Bank of Japan hope that a tight labour market is finally starting to boost wages and consumer spending, which in turn should make it easier to generate sustained inflation.

The rosy data was also a vindication for Japanese Prime Minister Shinzo Abe's government, which has faced criticism that its economic agenda has not done enough to revive the country's fortunes.

Japan's growth had been largely reliant on robust exports earlier in the year, though there were signs private consumption was picking up. - REUTERS