Japan’s economy, will expand at a faster pace in the current fiscal year than previously forecast as robust exports to Asia and improving corporate earnings are underpinning a broadening recovery.
The Cabinet Office said that Japan’sgross domestic product will rise 2.6% in the year to March 2011, faster than an earlier estimate of 1.4%.
Japan’s economy has emerged from last year’s recession — the worst since World War II — thanks to a recovery in exports, which alone account for 10% of Japanese gross domestic product.
Earlier, Japan upgraded its economic growth in the January-March quarter to an annualised pace of 5% from 4.9% in a preliminary report.