STORY: Japan's economy is officially out of recession thanks to a boost in household spending post COVID.
New figures released Wednesday show GDP grew 1.6 per cent in January to March,
far exceeding what was predicted and marking the economy's first expansion in three quarters.
The boost was chalked up to a hike in private consumption - nearly half of the economy- following the end of the pandemic.
The world's third largest economy is not fully out of the water though.
Economists warn that the outlook remains uncertain due to evidence of an economic slowdown in the U.S., Europe and China.
Weak overseas demand has weighed heavily on the country's exports which slumped 4.2% in the same period and marked the first decline in six quarters.
Japan's Central Bank is now faced with the task of deciding when to phase out its massive stimulus program.
Rising fuel and food costs have also driven Japan's consumer inflation above the bank's 2% target...
And that, in turn, could weigh on consumption unless wage hikes are sustained.