Japan’s GDP grows faster that forecast

Japanese government bonds are in demand as low risk instruments within the money market are seen as imperative to security and survival within the current turbulent economic conditions, as the world’s second largest economy has not been so widely affected by credit crunch of recession in the US, causing exports to drop.

This followed last week’s announcement of a new five-year government bond which was made in order to meet demand in securities.

The government has overseen a prolonged period of economic growth within the first quarter and this can be seen, especially in the exponential growth within the manufacturing industry.

The real economic growth was far higher than forecasts by analysts as the GDP grew by 0.8 percent in real terms and at an annualized rate of 3.3 percent between January and March, as a figure of 0.4 percent was banded by leading analysts from both Forbes and Bloomberg.

Lead by the resurgence of the manufactory industry, the Nikkei 225 Stock Average has increased by 21 percent within the same period.

The draw to Japanese bonds is in a period where the Yen traded at 104.38 against the dollar, even though it has fallen by 7 percent since the start of the year.

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