GDP in Japan
Japan - GDP (billions of U.S. Dollars)
Stronger private consumption and investment boost Q4 GDP
The Japanese economy grew at a faster rate than previously reported in Q4 as private consumption managed to grow mildly and investment recorded a healthy expansion, according to revised data released on 8 March. GDP rose 1.2% in Q4 over the previous quarter in seasonally adjusted annualized terms (SAAR), which was above the 1.0% increase reported in the first release. The print matched Q3’s result and represented the fourth consecutive positive reading. On an annual basis, economic activity rose 1.6% in Q4. The print was down from the 1.7% increase reported in the first estimate and marked an acceleration from Q3’s 1.1% rise.
The upwardly-revised figure reflected that, although weak wage growth continues to weigh on private consumption, it still expanded a slight 0.2% in Q4, up from the flat reading in the first estimate. A declining unemployment rate is positively contributing to shoring up household spending. Unlike private consumption, investment remains strong on the back of healthy demand for Japanese goods and the Central Bank’s accommodative monetary policy. Growth in gross fixed capital formation was revised up from 1.1% in the first release to 3.4% in the second estimate. On the downside, public consumption steadied at 1.0% in the second estimate, down from 1.6% in the initial release. The contribution from the external sector to overall growth was unchanged.
Despite the upward revision, the reading fell short of the 1.7% growth that market participants had expected. As a result, analysts are wary that the specter of an economic downturn is becoming more real than before as private consumption remains sluggish. Moreover, downside risks could quickly materialize if the Trump administration adopts a more restrictive trade policy that could hit Japan’s all-important external sector.
The Bank of Japan (BoJ) expects the economy to expand between 1.3% and 1.6% in the fiscal year 2017, which ends in March 2018. In the subsequent fiscal year, the BoJ sees GDP growth of between 1.0% and 1.2%. FocusEconomics Consensus Forecast panelists see GDP expanding 1.0% in calendar year 2017, which is up 0.1 percentage points from last month’s projection. In 2018, the panel sees the economy growing 0.8%.
Japan - GDP (USD bn) Data
|GDP (USD bn)||5,939||5,971||4,863||4,622||4,117|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.06||-3.45 %||Mar 23|
|Exchange Rate||111.0||-0.19 %||Mar 23|
|Stock Market||19,085||0.23 %||Mar 23|
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
March 24, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) fell from February’s revised 53.3 (previously reported: 53.5) to 52.6 in March.
March 22, 2017
Japanese nominal exports valued in yen increased 11.3% from the same month last year in February, following January’s 1.3% increase.
March 16, 2017
The Bank of Japan (BoJ) maintained its monetary policy stance at its 15–16 March meeting, voting to continue with its Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control program as long as is necessary to achieve and maintain its 2.0% inflation target.
March 13, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) fell in January, casting doubts about the sustainability of the Japanese recovery.
March 8, 2017
The Japanese economy grew at a faster rate than previously reported in Q4 as private consumption managed to grow mildly and investment recorded a healthy expansion, according to revised data released on 8 March.