The Cabinet of Japan brought to public positive data on the national economic growth which came as a surprise to everyone. The GDP preliminary estimate had been equal to some 4.1%, while analysts had forecasted 4.5% growth.


Yet, as a report of the Cabinet shows, the revised GDP surpassed the flash estimate and forecast. Japan�s GDP change was 4.7% in the 1st quarter. The country�s economy expanded by 1.2% on a quarterly basis and by 2.8% year on year.


In addition, new data on Japan�s trade balance was delivered. It turned out to be much less upbeat. Under the circumstances of a deepening Europe�s crisis, weak US recovery and global economic slowdown,


investors prefer such safe-heaven asset as the yen. Due to high demand, the rate of the currency is rising.


However, in the light of a soaring currency rate, prices of goods increased, so exports have been quite subdued.


The trade balance deficit of the country is now already 463.9 bn yen. In April the current account surplus of Japan slumped by 21.2% year on year with its previous reading being 8.6% and the forecast - 7.5%. Another source of adverse effect was high energy prices.