Data showed that the Japanese economy grew faster than expected in the first quarter thanks to strong exports and consumption, but this momentum will face a difficult test as the full effects on companies and consumers of the energy crisis resulting from the Iran war begin to appear.
This data will be one of the main factors that the Bank of Japan will carefully study to determine whether the economy is able to withstand the energy crisis, and will allow it to raise interest rates soon, perhaps next month.
Data released on Tuesday showed that Japan’s real gross domestic product rose 2.1% on an annual basis, exceeding average market expectations for a rise of 1.7% and a revised increase of 0.8% in the previous quarter, extending from October to December.
