Japan Q1 GDP growth tops expectations
Consumption rises 0.6 qtrqtr vs f39;cast 0.4
Business spending unexpectedly rises
Weak external demand shaves off GDP
Nominal GDP hits 570.1 trln yen, record above preCOVID high

TOKYO, May 17 Reuters Japan39;s economy emerged from recession and grew faster than expected in the first quarter as a postCOVID consumption rebound offset global headwinds, shoring up hopes for a sustained recovery.

But mounting signs of a slowdown in U.S., European and Chinese growth cloud the outlook for the exportreliant economy, heightening uncertainty on how soon the central bank can phase out its massive stimulus programme.

Consumption will continue to underpin growth as removal of COVID curbs boost tourism and service spending, said Yoshiki Shinke, chief economist at Daiichi Life Research Institute.

But the economic recovery will be moderate as weak overseas demand will weigh on exports. It will be a tugofwar between robust domestic demand and sluggish exports, he said.

The world39;s thirdlargest economy grew an annualised 1.6 in JanuaryMarch, government data showed on Wednesday, far exceeding market forecasts for a 0.7 gain and marking the first rise in three quarters.

The growth followed a 0.1 fall in the final quarter of last year, which was revised down from a 0.1 rise. The decline marked two straight quarters of contraction, meeting the definition of a technical recession.

Private consumption, which makes up more than half the…