Japan's economy grew faster than expected in Q1, with a post-COVID consumption rebound offsetting global headwinds. Private consumption, which makes up more than half of the economy, grew by 0.6% in Q1 from the previous quarter, beating forecasts of a 0.4% increase. Capital expenditure also surprised, expanding 0.9%, confounding forecasts for a 0.4% fall. However, weak external demand shaved off GDP, and rising fuel and food costs could weigh on consumption unless wage hikes are sustained.
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