Japan’s economy grew faster than expected since the beginning of 2014.
Yoshiki Shinke chief economist at Dai-ichi Life Research Institute said: “the growth number may look good on surface but there’s not much to cheer about.”
The economy grew 2.4% in the period against forecasts of 1.5%. Japan came out of recession in the fourth quarter of last year. came out of recession in the fourth quarter of last year.
Japan is permitting a more supreme version of the lopsided recovery that is ongoing in the United States, where unemployment has fallen but wages for many workers are stuck.
Naohiko Baba, the chief Japan economist at Goldman Sachs, estimates that the growth of Japan’s irregular work force is depressing average wages by as much as 0.5 percent a year. “Pay rises do not necessarily increase Japan’s average wage,” he said.