In this Weekly we present our updated GDP forecasts. The Japanese economy looks set to return to growth in Q1 after contracting in four of the last five quarters. We expect the economy will continue to expand over the rest of the year as reconstruction-related expenditure and other government spending drives GDP. However, our upwardly revised forecast of 1.5% for 2012 is still below consensus, and we expect growth to slow again in 2013 and beyond.
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