On Monday, the Japanese will report their first-quarter GDP numbers, with growth of 0.9 per cent forecast, equating to impressive annualised growth of 3.5 per cent. In the context of an economy that had registered zero growth for longer than many care to remember, that is a highly creditable performance.
If Abenomics does work, then other economic measures out on the same day should show a similar reaction, like the figures for Japan's current account surplus, for example. The surplus is emblematic of its export-led growth and an increase in exports has boosted it so far this year to Y1.25 trillion ($12.6bn) - April's figures are expected to show a continuation of that trend. Coincidently, the economics watchers survey for Japan is out on the same day, with the index expected to show expansion in the economy with ratings of over 50.
The effect of all that stimulus on the country's money supply will be another area of interest and Tuesday sees figures for year-on-year M2 and M3 measures, which had been growing by an average of 3 per cent - another consequence of the expansionary side of Abenomics. Meanwhile, Wednesday sees another key indicator of Japan's industrial economy with figures for monthly machine orders. These were showing a big spike in the first quarter as the cheaper yen made Japanese capital goods attractive to foreign buyers.
Finally, retail investors will be interested in Friday's analysis of the stock and bond-buying patterns of Japanese and foreign investors. In the UK, Japan equity funds have enjoyed incredible one year returns, posting an average gain of 59 per cent, and today's buying patterns will confirm whether foreigners are still snapping up Japanese equities in numbers that justify getting involved.
Investors Chronicle's economist, Chris Dillow, is on annual leave
