POSITIVE SIGNS ON JAPAN’S GROWTH AS Q1 GDP BEATS EXPECTATIONS

TOKYO - Japan’s Q1 GDP growth has beat expectations in the latest sign that Abenomics is working to improve growth prospects. Q1 GDP on a non-annualised basis GDP grew by 0.9% on-quarter, accelerating from 0.3% in 2012 Q4. Growth was boosted by private spending and exports, with the latter benefitting from the yen’s depreciation. However, non-residential investment slowed, suggesting caution among the business sector. Looking ahead, BBVA Bank expects the Japanese economy to maintain improving growth trends, in line with BBVA’s full-year GDP growth projection of 1.7%.