The Japanese economy grew by 0.5% quarter-on-quarter, seasonally-adjusted, in the first quarter (vs 0.4% market consensus, 0.3% ING). This data, of course, reflects a period before the full effects of global energy shocks. For now, it demonstrates the economy’s resilience and indicates its ability to endure higher interest rates. The previous quarter’s growth was revised from 0.3% to 0.2%. Private consumption and business spending rose 0.3% each, signalling sustained domestic demand. The main upside surprise came from net exports, which added 0.3 ppt to overall growth, as the initial impact of the war was weaker than expected. [...]