Japan's economy grew 1.6 percent year-on-year in the first quarter, government data showed, as strong private consumption and an unexpected increase in capital spending offset a decline in external demand.
First-quarter GDP figures well exceeded economists' median estimates of 0.7 percent year-on-year growth. Private domestic consumption, which accounts for more than half of the economy, grew 0.6 percent quarter-on-quarter in the January-March period, and capital spending, the main driver of growth, rose 0.9 percent, versus economists' estimates of a decline.
Lower external demand, or net exports, trimmed first-quarter gains by 0.3 percentage points, which were offset by a 0.7 percentage point increase in domestic demand.
Source (Al-Arabiya.net Website, Edited)
