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Japanese Q1 growth revised lower

Japan's economy grew by 1.2% in the three months to March compared with the previous quarter, the government said this morning, revising downward an earlier estimate of 1.3%.

On an annualised basis, the world's second-largest economy grew by 4.9%, down from an initial estimate of 5.3%.

Despite the revision, the gross domestic product (GDP) growth rate remains the highest in a year and compares with an upwardly revised 0.1% gain in the last three months of 2004.

Japan is struggling to hold onto steady growth after slipping into a mild recession in the middle of last year, with private consumption backed by an improved labour market offsetting slower growth in exports.