Japanese GDP Grows 1% in Q1


Japan's gross domestic product (GDP) expanded 1.0 percent in January-March from the previous quarter after a revised 0.0 percent result for October-December last year. The recovery was mostly due to solid consumer spending, post-quake rebuilding and rising exports.

Personal consumption grew 1.1 percent and contributed 0.7 percentage points to GDP after adding just 0.4 points in the prior three months. Some analysts are estimating that a third of the strong growth in private consumption, was due to the reintroduction of government incentives to buy fuel-efficient cars.

Capital investment jumped a quarterly 5.4 percent, rising for the first time in three quarters and adding 0.3 percentage points.

Private sector inventories contributed 0.4 percentage points, while net exports added 0.1 percentage points.

Limiting the upside, capex was down a quarterly 3.9 percent and 14.8 percent on year, cutting GDP by 0.5 percentage points. In addition, housing investment was down 1.6 percent on quarter and 6.1 percent on year.


TradingEconomics.com, Cabinet Office
5/17/2012 11:20:34 AM