Japanese GDP Growth Beats Expectations

Japanese economy expanded by 0.6 percent in the first quarter of 2015 following downwardly revised 0.3 percent rise in the last three months of 2014. The growth was supported by private demand as businesses increased spending boosting inventories and personal consumption was better than expected.

Private demand grew 1.1 percent contributing 0.8 percentage point to the expansion. Personal consumption rose 0.4 percent quarter-on-quarter, compared to downwardly revised 0.4 percent gain in the last three months of 2014. Business spending (private non-residential investments) increased just 0.4 percent, but revision was positive: a 0.1 percent fall in late 2014 is now flat and Inventory buildup added 0.5 percentage point to the growth. Private residential investment grew 1.8 percent.

Public demand declined by 0.2 percent with public investment subtracting 0.1 percentage point from the expansion.

Net exports subtracted 0.2 percentage point from the growth as exports rose 2.4 percent (+0.2 pp) and imports grew 2.9 percent (-0.4 pp).

The first quarter gross domestic product figure translated into an annualised expansion of 2.4 percent.

Japanese GDP Growth Beats Expectations

Statistics Bureau of Japan | anna@tradingeconomics.com
5/20/2015 8:33:40 AM