Japanese Q1 growth fails to meet forecast

TOKYO - Japan's economy grew less than forecast in the first quarter as an export-led recovery failed to stoke consumer spending, putting pressure on the central bank to do more to end deflation as it begins a two-day meeting.

Gross domestic product rose an annualized 4.9 percent, less than the 5.5 percent median forecast in a Bloomberg survey of 21 economists, a Cabinet Office report showed in Tokyo. Export gains saw nominal GDP, which is unadjusted for price changes, increase 1.2 percent on a quarterly basis, the most in a decade.

Stocks fell and Finance Minister Naoto Kan said he expects the Bank of Japan, which is planning measures to encourage banks to lend more, to support an economy that's not yet in a self-sustained recovery. The comeback in world trade, spurred by China's demand, is helping countries across Asia, with Singapore reporting a jump in GDP.