The economy grew a real 0.1 percent in the January-March quarter from the previous quarter, revised upward from the initially reported 0.006 percent rise, the government said Wednesday.

The growth, measured in terms of gross domestic product, translates into annualized growth of 0.6 percent, revised upward from the earlier reported 0.025 percent, the Cabinet Office said.

This means the government’s real GDP growth target of 0.6 percent for fiscal 2003 can be achieved even if GDP figures are flat in the remaining quarters.

The Cabinet Office attributed the upward revision to an increase in inventories in the private sector and a drop in imports of goods and services.

The GDP deflator, a major inflation barometer, fell 3.3 percent from a year earlier, compared with a 3.5 percent decline in the preliminary report.

Real GDP figures are adjusted for inflation and seasonal variations.

On a nominal basis, the GDP for the January-March quarter fell 0.4 percent from the previous quarter, compared with the preliminary 0.6 percent decline.

Personal spending, a key to achieving sustainable growth, dropped a real 0.2 percent, downward revision from 0.3 percent growth in the initial report.

Corporate capital investment rose 0.7 percent, a downward revision from a 1.9 percent rise in the preliminary report, while housing investment contracted 1.2 percent, unchanged from the initial report.

Exports shrank 0.4 percent, an upward revision from a contraction of 0.5 percent in the preliminary report, and imports expanded 0.1 percent, a downward revision from a 1.4 percent rise reported earlier.

For fiscal 2002, the GDP grew a real 1.5 percent, revised downward from a 1.6 percent rise in the preliminary report.

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