According to preliminary data from the Japanese government, the country's economy grew by 0.4% in the first quarter of 2023 compared to the previous three months. Analysts predicted an increase in GDP by only 0.1%. It is noted that the growth rate of the Japanese economy in the first quarter was the highest since April-June 2022. One of the key factors contributing to GDP growth was the increased demand for the Japanese automotive industry. Japanese automakers continue to show excellent results in the international market due to the high quality of their cars and innovative technologies. The growth of domestic consumption also affected the GDP indicator. Against the background of an improvement in the employment situation and an increase in wages, the Japanese began to spend more money on goods and services. This contributed to increased activity in retail trade and services, which ultimately supported the country's GDP growth. In particular, consumer spending increased by 0.6%, also at the fastest pace in three quarters, including due to the lifting of restrictions on entry into the country. Business investment rose 0.9% after falling 0.7% in the fourth quarter, government spending remained unchanged for the third quarter in a row. The volume of Japanese exports in the first quarter decreased by 4.2%, the volume of imports decreased by 2.3%. By the end of 2022, the Japanese economy grew by 1.1% after growing by 2.1% in 2021.
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