Japan raises January-March economic growth estimate to 1.2 per cent amid disaster recovery

TOKYO – Japan has raised its estimate of January-March economic growth to 1.2 per cent compared with the previous quarter amid a recovery from last year’s earthquake and tsunami.

The Cabinet Office said Friday the figure was increased from 1 per cent as private spending was higher than first estimated and corporate investment didn’t decline as much.

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The revision means the economy grew 4.7 per cent on annualized basis in the quarter compared with the initial estimate of 4.1 per cent.

Consumer spending is lifting the world’s third-biggest economy, helped by government subsidies for green vehicles.

Public investment has also been growing, reflecting reconstruction spending on housing, roads and other building work following the March 11 disaster last year in northeastern Japan.