Japan’s economy grows faster than expected

Japan’s economy expanded at a faster pace than initially estimated as businesses ramped up spending, a largely positive development for Prime Minister Fumio Kishida amid ongoing speculation he may call an early election.

Gross domestic product grew at an annualized 2.7% in the January-March quarter from the previous three months, revised figures from the Cabinet Office showed Thursday. That beat both an initial reading of 1.6% and the 1.9% expansion forecast by economists. The revised data also showed that Japan avoided a technical recession at the end of last year.

The stronger corporate investment suggested sentiment among companies remained resilient despite concerns over a slowdown in the global economy. 

Fidelity Japan Trust PLC (LON:FJV) aims to be the key investment of choice for those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable price’ (GARP) investment style and approach – which involves identifying companies whose growth prospects are being under-appreciated or are not fully recognised by other investors. 

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