Japan: GDP growth stronger than initial estimate on robust domestic demand
June 9, 2014
GDP expanded 6.7% over the previous quarter in seasonally adjusted annualized terms (SAAR) in Q1 according to new data that was released on 9 June. The increase was well above the 5.9% rise reported in the first estimate and marked the fastest pace of expansion since Q3 2011. On an annual basis, economic activity expanded 3.1% in Q1 (previously reported: +3.0% year-on-year).
The upwardly revised growth figure was driven by stronger domestic demand, while the contribution from the external sector was not revised. Private consumption expanded 9.2% in Q1, which was above the 8.5% increase that had been reported previously. Government spending was virtually unchanged at 0.4% growth. Private non-residential investment fared better than initially reported, expanding 34.2% (previously reported: +21.0% quarter-on-quarter SAAR), while gross fixed investment followed suit and accelerated to a 19.4% increase (previously reported: +12.1% qoq SAAR).