Japan Q2 GDP Growth Strongest in Over 2 Years


The Japanese economy advanced 1.0 percent on quarter in the three months to June of 2017, following an upwardly revised 0.4 percent expansion in the previous period and beating market consensus of 0.6 percent, the preliminary estimate showed. It was the strongest growth rate since the first quarter of 2015, boosted by strong domestic demand.

The positive contribution to GDP came from household consumption (0.5 percentage points), capital expenditure (0.4 percentage points) and government spending (0.1 percentage points). In contrast, net trade subtracted 0.3 percentage points from the growth.

Private consumption increased by 0.9 percent, the most in over three years, after rising by an upwardly revised 0.4 percent in the prior quarter.

Government expenditure rebounded 0.3 percent, following a 0.1 percent contraction in the prior three months. Meanwhile, public investments jumped 5.1 percent, much faster than a 0.6 percent rise in Q1.

Business spending spiked 2.4 percent, following an upwardly revised 0.9 percent rise in the March quarter. It was the fastest growth in business investment since January-March 2014. Meantime, private residential investment grew by 1.5 percent, faster than a 0.9 percent increase in Q1.

Exports of goods and services declined by 0.5 percent after increasing 1.9 percent in Q1; while imports rose 1.4 percent, faster than a 1.3 percent gain in the previous three-month period.

On an annualised basis, the GDP expanded 4.0 percent, compared to an upwardly revised 1.5 percent growth in the first quarter and beating market consensus of 2.5 percent. The Japanese economy has now expanded in six straight quarters, the first such streak in more than three years.


Cabinet Office l Rida Husna | rida@tradingeconomics.com
8/14/2017 7:45:08 AM