Japan’s Q1 2020 GDP revised on account of higher capital spendingChristian Fernsby ▼ | June 8, 2020
The contraction in the Japanese economy has been revised higher, to indicate a lower than expected decline, however, the risks of a recession continue to weigh on the world’s third largest economy.
Capital spending Japan factory
Topics: Japan GDP
However, the decline was slightly higher than the economists’ forecast, which stood at 2.1%.
In Q4 2019, Japan’s GDP reading came in at -7.2%, indicating that the country has fallen into a technical recession even before the coronavirus pandemic fueled lockdown was implemented.
On a quarterly basis, the contraction in the economy during Q1 this year works out to 0.6% YoY, a better figure than the initial reading which estimated a 0.9% QoQ contraction.
The improvement in the GDP reading was driven by higher levels of capital spending during the first three months of the year.
Business spending gained by 1.9% QoQ in the first quarter of the year, after having estimated to have fallen by 0.5% instead.
However, private consumption figures were revised lower for the period, from the prelim reading of 0.7% to a final decline of 0.8% even as net exports took off 0.2% of Japan’s GDP. ■