img-news

Japan’s GDP numbers not impressive as economy hits lowest since 2014

  • Regular
  • Asian Market
  • 6 months ago
  • 70

Japan’s economy has shrunk to its lowest since 2014, as third quarter capital expenditure fell and elevating concerns of local demand and exports as it deals with global trade instability.. GDP diminished at an annualized rate of 2.5% which much higher than the estimated 1.2% and economists expected figure of 1.9% according to data form the Cabinet Office. Analysts expect the third largest economy to rally in the current quarter due to the fact the decline in numbers had factors such as natural disasters which disrupted supply chains and factory outputs. Revised figures for the second quarter of this year showed a quarter-on-quarter contraction of 0.6% in real, price-adjusted terms, against a preliminary reading of a 0.3% drop. Capital expenditure component of GDP dropped by 2.8% in July-September from the previous quarter, against the forecast of a 1.6% decline. Those figures were significant decreases since the third quarter of 2009. Private consumption also dropped by 0.2% in the third quarter unlike the 0.1% drop originally estimated. Finally, domestic demand shed 0.5 percentage points off the revised GDP figure and net exports contributed -0.1 percentage point. Source: Smart Trend Team