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Japan's recovery accelerating, central bank says.

Friday, April 30, 2010

Exports driving Japan's economic recovery into higher gear, central bank says.

Tomoko A. Hosaka, Associated Press Writer, On Friday April 30, 2010, 5:07 am EDT

TOKYO (AP) -- Japan received a brighter assessment of its economic future Friday, with a key central bank report highlighting an accelerating recovery and easing price declines.

In its semiannual outlook, the Bank of Japan predicted that the world's second biggest economy would see faster growth this fiscal year, which began April 1, and a possible end to deflation within two years. Gross domestic product will probably expand 1.8 percent this year, the central bank said, better than its previous forecast of 1.3 percent.

The report credited robust growth in overseas markets, particularly in Asia, for fueling Japanese exports and production. Stock prices and corporate profits are up. That should boost capital expenditures and eventually lead to more jobs, higher wages and stronger domestic demand.

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