Japanese economy ‘on right track’ for recovery

<p>The Japanese economy is bouncing back.</p>

The Japanese economy is continuing on the right track for recovery as it bounces back from the global financial slowdown.

This is the view of Hideki Matsumura, from the Japan Research Institute, who was commenting on the news Japanese GDP rose by almost one per cent in the first quarter of the year.

He told BBC News: "The Japanese economy is on the right track to recovery. The economy is expected to grow further for now thanks to the impact of Abenomics."

Mr Matsumura was referring to the economic plan of prime minister Shinzo Abe, who was implemented strict measures designed to get the economy moving, including the weakening of the yen compared with the dollar.

Japan was shown to have grown at a rate of per cent at the end of 2012 as it emerged from a recession, the official data revealed.

Earlier in the week, the yen dropped to a new five-year low compared to the greenback. It recently broke through the psychological 100 barrier and some analysts believe it will fall further in the coming months.

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