The Japanese economy which is currently the third largest in the world expanded faster than expected within a year with the increase in exports .The Japanese economy grew at a estimated rate of 1% at the end of 2012 and the gross domestic products increased by 0.9% within the last 3 months from January to March from previous quarter.
According to reports ,ever since Abe’s return to power the economy has boosted in the first full quarter and he plans to continue to revive the world’s third largest economy .Analysts are expecting the export income and domestic demand to pick up to help the economy from its two decades of the struggle with deflation and stagnation .
Exports have helped to boost the yen to 4-1/2 year against the dollar, making 0.4 % contribution to GDP despite the high number in imports which causes a weaker currency. The main Nikkei 225 index climbed by 45% this year.
Japan is currently outpacing the US and the eurozone with a growth rate of 3.5% from January to March quarter.
“ Some Japanese stocks may be too high the GDP shows the strength of economy may justify the uptick trend in stocks .I see a chance that Japan will have even better growth this quarter, “ said the senior economist Yoshiki Shinke at the “Dai-Ichi Life Research Institute in Tokyo.
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