Japan’s economy grew a lot faster than initially estimated — but no policy change expected
Tokyo — Japan’s economy expanded more than initially estimated in the last quarter of 2017, thanks to an upward revision of capital expenditure and inventory data, confirming the longest run of growth in 28 years. Global demand for technological products has driven an investment boom in many of the country’s high-end sectors, such as cars, semiconductors and precision machinery, mirroring trends seen in other major Asian exporting nations. However, despite the solid growth — the eighth consecutive quarter of expansion — analysts say the Bank of Japan is unlikely to bring forward a debate on exit from monetary stimulus, given the sluggish wages that have prevented consumer spending and inflation from accelerating. Central bank governor Haruhiko Kuroda, who is set to serve another term, rattled markets last Friday by flagging for the first time the prospect of an exit from monetary stimulus if 2% inflation were met in fiscal 2019 — a remark he later tempered. Yoshimasa Maruyama, chief...
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