In the second quarter Japan's GDP grew by 3,8% on an annual basis and by 0,9% over the previous three months. The Japanese Cabinet Office announced it today. The data is better than the preliminary results released previously (+2,6% on year and +0,6% on quarter).
This is the third consecutive quarter of growth (+4,1% year on year in the first quarter), largely fueled by the ultra-expansionary policies implemented by the Bank of Japan. In particular, the upward revision is linked to a marked improvement in investment spending.
This confirms the start of a solid recovery and therefore increases the chances that in April 2014 the government will give the green light, as planned, to the increase in the "sales tax" from 5 to 8% (then to 10% in 2015), a step considered crucial to secure public finances.
Furthermore, the positive numbers on GDP come just a few hours after the news that Tokyo will host the 2020 Olympics, considered by the political world to be a further propellant for the emergence of the world's third largest economy from a long period of deflation.
Meanwhile, the Tokyo Stock Exchange celebrates. The Nikkei climbs to a five-week high thanks to purchases of stocks that could benefit from the Olympic event and closes up 2,8%. The Topix rose 2,19%.
Taisei, the company that built the stadium for the 1964 games, soared more than 10%, hitting a six-and-a-half-year high on expectations for 2020 involvement in facility construction. The real estate and constructions are the best with increases of more than 5 and 4%. The Mitsubishi Estate and Mitsui Fudosan shine.
