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Japan fourth quarter 2015 GDP falls more than expected

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Staff writer ▼ | February 16, 2016
Japanese economic activity slowed more than was expected at the end of 2015, as household consumption dropped sharply.
Tokyo street
Second largest   In annualised terms GDP in Japan declined by 1.4%
Gross domestic product in Asia's second-largest economy shrank by 0.4% quarter-on-quarter in the last three months of 2015, according to the country's Cabinet Office.

In annualised terms GDP declined by 1.4%, whereas economists had penciled in a drop of 0.8%.

Household consumption fell by an outsized 0.9% in the fourth quarter of 2015, after an increase of 0.4% in the third quarter, and government expenditures by another 0.1%.

Gross fixed capital formation was the only component of aggregate demand to register positive growth, rising by 0.1% over the quarter, with a 1.4% gain in non-residential private investment offsetting a 1.2% decline in private residential investment.

Exports fell by 0.9% quarter-on-quarter and imports by 1.4%, with net exports thus adding 0.1 percentage points to the rate of growth in GDP.