Japan GDP Growth Strongest In A Year In Q1


The Japanese economy advanced 0.5 percent on quarter in the March quarter of 2017, following a 0.3 percent growth in the previous period and above market consensus of a 0.4 percent growth, preliminary estimates showed. It was the strongest expansion since the first quarter 2016, supported by private consumption, exports and an unexpected rise in capital expenditure.

Compared to the December quarter 2016, private consumption rose 0.4 percent, following a stagnation in the previous period and adding 0.2 percentage point to growth.

Private non-residential investments/ capital expenditure unexpectedly increased by 0.2 percent, after declining 1.9 percent in the December quarter and beating market estimates of a 0.4 percent fall. Private residential investment grew by 0.7 percent, faster than a 0.4 percent rise in Q4.

External demand added 0.1 percentage points to growth, as exports of goods and services rose 2.1 percent (from 3.4 percent in the previous three months) while imports went up 1.4 percent (from 1.3 percent).

Government consumption gained 0.1 percent, the same as in the prior three months. Meanwhile, public investments fell 0.1 percent, much slower than a 3.0 percent fall in Q4 and giving no contribution to growth.

On an annualised basis, the economy expanded 2.2 percent, compared to an upwardly revised 1.4 percent growth in the prior quarter. It was the fifth straight quarter of expansion, driven by continued strength in exports. 

Cabinet Office | Rida Husna | rida@tradingeconomics.com
5/18/2017 10:18:54 AM