Japan Q1 GDP Growth Revised Higher to 0.6%


The Japanese economy advanced 0.6 percent quarter-on-quarter in the first quarter of 2019, stronger than a preliminary estimate of 0.5 percent and after an upwardly revised 0.5 percent growth in the previous period.

In the first quarter, the largest contribution to the GDP growth came from net exports (0.4 percentage points), followed by private demand (0.1 percentage points) and changes in private inventories (0.1 percentage points).

Net exports contributed positively to the GDP expansion for the first time in four quarters, as imports of goods and services plunged 4.6 percent (vs 3 percent in Q4), the biggest decrease since the first quarter of 2009. Meantime, exports fell at a slower 2.4 percent (vs 1.2 percent in Q4), the steepest decline since the second quarter of 2015.

Meanwhile, private demand growth eased to 0.1 percent in the March quarter from 0.9 percent in the preceding period. Private consumption contracted 0.1 percent, compared to a 0.3 percent advance in Q4. Meanwhile, business spending grew by 0.3 percent, against a preliminary estimate of a 0.3 percent decline and following a 2.7 percent growth in Q4. 

Public demand increased by 0.2 percent in the March quarter, easing from a 0.3 percent advance in Q4. Public investment rebounded (1.2 percent vs -1.5 percent in Q4), while government spending contracted for the first time since the second quarter of 2017 (-0.1 percent vs 0.7 percent in Q4).

On an annualized basis, the economy grew 2.2 percent in the first quarter, better than the preliminary figure of 2.1 percent and following an upwardly revised 1.8 percent advance in the previous quarter. This was the highest annualized rate in three quarters.

Japan Q1 GDP Growth Revised Higher to 0.6%


Cabinet Office | Rida Husna | rida@tradingeconomics.com
6/10/2019 1:19:05 PM