Japan GDP Growth Revised Down To 0.3% In Q1


The Japanese economy advanced 0.3 percent quarter-on-quarter in the three months to March of 2017, below preliminary estimates of a 0.5 percent expansion but at the same pace as in the prior quarter. Upward revision in capital expenditure was not able to offset a weaker private consumption.

Compared to the December quarter 2016, domestic demand rose 0.1 percent (0.4 percent in the preliminary estimate) and added 0.1 percentage points to growth. Private consumption, which accounts for about 60 percent of the economy, went up 0.3 percent (down from 0.4 percent in preliminary estimate and compared to a flat reading in the prior quarter) and contributed 0.2 percentage points to expansion. Public spending made no contribution to  growth. Government consumption was flat (from 0.1 percent in the preliminary estimate and compared to a 0.1 percent increase in Q4). Meanwhile, public investments fell 0.1 percent (from a 3.0 percent fall in Q4).

Private non-residential investments/capital expenditure increased by 0.6  percent (much faster than 0.2 percent in the preliminary estimate and following a 1.9 percent rise in Q4), adding 0.1 percentage points to expansion. Private residential investment went up 0.3 percent (lower than 0.7 percent in the preliminary figure and after a 0.4 percent gain in Q4). 

Meanwhile, changes in private inventories subtracted 0.1 percentage points from quarterly growth (from 0.1 percentage points in the preliminary figure). 

Net exports added 0.1 percentage point to the economy (unchanged from preliminary estimate), as exports of goods and services expanded 2.1 percent (from a 3.4 percent rise in Q4) while imports rose 1.4 percent ( from a 1.3 percent growth).

On an annualised basis, the economy grew by 1.0 percent, much weaker than preliminary estimates of a 2.2 percent expansion and following a 1.2 percent growth in the December quarter 2016.


Japan GDP Growth Revised Down To 0.3% In Q1


Cabinet Office l Rida Husna | rida@tradingeconomics.com
6/8/2017 5:53:16 AM