Japan’s “Abenomics” strategy of pumping trillions into its stagnant economy and ramping up public spending is paying off as the growth picture improves.
The government said its latest monthly snapshot showed the economy was “gradually recovering” as exports and factory output rise. The improvement has been driven by the steep fall in the yen in the wake of the Prime Minister Shinzo Abe’s aggressive attempts to jump-start growth.
Bank of Japan rate-setters are expected to pause for breath this week after launching their “shock and awe” strategy. Share prices have rocketed 70 per cent and the yen slumped to 2009 lows since Mr Abe unveiled his plans.
The latest Reuters Tankan survey showed sentiment among manufacturers rose for a sixth straight month in May, turning positive for the first time in a year.
Last week figures showed the economy grew at a faster-than-expected 0.9 per cent in the first quarter.