Japan’s GDP Contracts 0.1 Percent in the Fourth Quarter

The Japanese economy has contracted 0.1 percent (seasonally adjusted) in October-December of 2012 over the previous quarter, marking the third consecutive quarter of declining output.

Private consumption, representing more than half of total GDP, increased 0.4 percent from the previous quarter. Capital expenditure fell 2.6 percent for the fourth consecutive quarter. A weaker yen in recent months partially improved business earnings but was not enough to avert the declining trend in investment.

Exports fell for a second straight quarter by an annualized rate of 14.0%, while imports fell by an annualized 9.0%. On balance, external demand shaved 0.2 point off the GDP.
Public expenditure expanded, helped to avoid an even larger GDP contraction. Government consumption increased 0.6 percent, and public investment expanded 1.5 percent quarter-over-quarter.
On an annualized basis, real GDP contracted 0.4 percent. Nominal GDP declined 0.4 percent quarter-over-quarter. The GDP deflator was down by 0.6 percent.

Nuno Salva | nuno.salva@tradingeconomics.com
2/14/2013 10:55:08 AM