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Japan's economy expands at fastest pace in a year

Japan's economy expanded an annualised 2.2%in the three months from January to March.
Japan's economy expanded an annualised 2.2%in the three months from January to March.

Japan's economy grew in the first quarter at its fastest pace in a year to mark the longest period of expansion in a decade.

The growth was thanks to robust exports and a helpful boost from private consumption. 

Today's positive data should offer some relief to Bank of Japan policymakers, who hope the economy is now gathering enough momentum to drive up inflation that remains stubbornly below their 2% target. 

Driven by robust exports and firming domestic consumption, Japan's economy expanded an annualised 2.2% in the three months from January to March.

This exceeded a median market forecast for a 1.7% rise to post the fastest growth rate since the first quarter of 2016, Cabinet Office data showed. 

It marked the fifth quarter of expansion in a row - the longest growth run since a six-quarter streak during 2006, when the Bank of Japan was exiting from its previous quantitative easing programme on signs of strength in the economy. 

Analysts said that the economy is enjoying comfortable growth driven by both domestic and external demand.

They said that while consumer spending remains relatively soft and has room to improve, the economy passed the grade both in terms of the pace of growth and the quality of the expansion.

Japan's economic growth in the first quarter outpaced an annualised 1.8% expansion in the euro zone and a 0.7% increase in the US.