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Japan's Q1 GDP grows 2.1%, Iran war poses risks

Japan's Q1 GDP grew 2.1% but Iran war energy shock may slow momentum. BOJ eyes June rate hike.

Benjamin Moore
ByBenjamin Moore- Senior Editor
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Japan's economy grew faster than expected in Q1, with GDP rising an annualized 2.1%.

However, the Iran war and resulting energy crisis threaten future growth. Oil prices have surged.

Analysts expect a contraction in Q2. Japan is highly dependent on Middle Eastern oil.

The Bank of Japan may raise interest rates in June, while the government plans subsidies to cushion the blow.

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