In the first quarter, households final consumption expenditure rose 1.1 percent (after +0.1 percent in the preceding quarter). Government expenditure rose 0.5 percent, the same pace as in the previous three months. Total gross fixed capital formation increased by 1.4 percent, accelerating from a 1.0 percent expansion in the preceding quarter. Non-financial corporations' investment rose 2.1 percent, as compared to a 1.6 percent rise in the fourth quarter 2015. Final domestic demand excluding inventory changes contributed for +1.0 points to GDP growth (after +0.4 points in the December quarter).
Exports remained unchanged (from +0.8 percent rise), while imports rose 0.8 percent (from +2.8 percent). That brought the foreign trade balance contributed negatively to the economy (-0.2 points after -0.6 points in the December quarter). Changes in inventories also contributed negatively to GDP growth (-0.2 points after +0.6 points).
Year-on-year, the economy expanded 1.3 percent, compared to a 1.4 percent expansion in the December quarter and in line with expectations.