Japan - GDP

Japan’s economy exits recession in Q4; growth revised downward on falling investment

Although revised data confirmed that the Japanese economy exited recession in Q4, growth in the final quarter of 2014 was lower than initially expected. GDP expanded 1.5% in Q4 over the previous quarter in seasonally adjusted annualized terms (SAAR), according to new data released on 11 March. The reading was below the 2.2% increase reported in the first release. On an annual basis, economic activity fell 0.8% in Q4, which undershot the 0.5% drop tallied in the first estimate.

The downwardly revised figure showed that domestic demand was weaker than previously estimated, while the contribution to growth from the external sector was left unchanged. Although growth in both private consumption and public spending fared better compared to the initial estimate, expanding 2.0% (previously reported: +1.1% quarter-on-quarter SAAR) and 1.2% (previously reported: +0.4% qoq SAAR) respectively, a downward revision to investment drove down overall GDP. Gross fixed capital formation declined 0.1% (previously reported: +0.1% qoq SAAR) and private non-residential investment contracted 0.3% (previously reported: +0.4% qoq SAAR).

The Bank of Japan (BoJ) expects the economy to expand between 1.8% and 2.3% in the fiscal year 2015, which ends in March 2016. In the subsequent fiscal year, the BoJ sees GDP growth of between 1.5% and 1.7%. FocusEconomics Consensus Forecast panelists see GDP expanding 0.9% in calendar year 2015, which is down 0.1 percentage points from last month’s projection. In 2016, the panel sees the economy growing 1.5%.

Japan - GDP Data

2009   2010   2011   2012   2013  
Economic Growth (GDP, annual variation in %)-5.5  4.7  -0.5  1.4  1.5  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.


Japan GDP Chart

Japan GDP
Note: Annual variation of gross domestic product (GDP) in %.
Source: Cabinet Office and FocusEconomics calculations.

Japan Facts

Value Change Date
Bond Yield0.33-0.30 %Apr 16
Exchange Rate119.0-0.12 %Apr 16
Stock Market19,8860.08 %Apr 16

Sample Report

See all the data and analysis available in each of our Regional and Country reports.


Economic News

Search form