Japan GDP Shrinks in Q2


The Japanese economy contracted 0.4 percent quarter-on-quarter in the three months to June of 2015, slightly lower than market expectations. It is the first contraction since the third quarter of 2014, due to a slump in private and external demand.

According to first preliminary report, private demand declined 0.4 percent, subtracting 0.3 percentage point to growth. Private consumption, which accounts for about 60 percent of the economy, fell 0.8 percent, substracting 0.4 percent to growth. Private non-resential investment dropped 0.1 percent. In contrast, private residential investment grew 1.9 percent, adding 0.1 percentage point to growth.

Exports declined by 4.4 percent, substracting 0.8 percentage poin from growth. Imports also declined by 2.6 percent, contributing 0.5 percentage point to growth. 

In contrast, public demand grew by 0.8 percent in the June quarter, contributing 0.2 percentage point to growth. Government consumption expanded 0.4 percent, contributing 0.1 percentage point to growth. Public investment grew 2.6 percent, also adding 0.1 percentage point to growth.

The second quarter gross domestic product figure translated into an annualised contraction of 1.6 percent. It is also the first contraction since the September quarter of 2014.

Japan GDP Shrinks in Q2


Japan Cabinet Office l Rida Husna l rida@tradingeconomics.com
8/17/2015 9:36:27 AM