Japan’s GDP in the 1st quarter fell by 0.6%, with forecasts for a decrease of 0.1%

Investing.com – Japan’s GDP in the first quarter of 2018 decreased by 0.6% in annual terms, according to the data of the Cabinet of Ministers of Japan. The decline in the quarterly indicator occurred for the first time since the end of 2015.

Experts interviewed by Nikkei Quick, on average, predicted a drop in the Japanese economy by only 0.1%.

The dynamics of GDP growth for the 4th quarter was revised for the worse. According to revised data, in the fourth quarter of 2017, Japanese GDP grew by 0.6%, and not by 1.6%, as previously reported. The economic recovery in Japan was marked for eight consecutive quarters, which was the longest period of continuous GDP growth since the late 1980s.

The volume of GDP in January-March decreased by 0.2% compared to the fourth quarter, while analysts did not expect it to change.

Consumer spending, which accounts for about 60% of Japan’s GDP, remained unchanged in the first quarter compared to the previous year, due to both unfavorable weather conditions in the country in January and February, and to rising prices for fresh food and gasoline.

Capital investments in the business declined 0.1% in January-March.

In the fourth quarter of last year, consumer spending in Japan increased by 0.2%, company investment – by 0.6%.

The positive contribution of exports, which is one of the main engines of the growth of the Japanese economy, in GDP dynamics in the first quarter was only 0.1 percentage points, in particular, due to the weakening growth in demand for electronic components.

The cabinet of Japan is expected to resume economic growth in the short term, noting the improvement of wages, as well as the strengthening of the global economic recovery, writes MarketWatch.