Japan Q2 GDP Growth Revised Lower to 0.3%

Japan's quarterly economic growth was revised lower to 0.3 percent in the second quarter of 2019 from a preliminary estimate of 0.4 percent and compared to the previous period's 0.5 percent growth. There was a sharp downward revision of capital expenditure amid weakness in the global economy and worsening trade protectionism.

In the June quarter, positive contributions came from private demand (0.3 percentage points), while changes in private inventories were neutral. On the other hand, net exports contributed negatively to the GDP.

Capital spending rose just 0.2 percent in the second quarter, much lower than a preliminary 1.5 percent rise and compared to a 0.2 percent contraction in the previous three-month period. Private consumption, which accounts for some 60 percent of GDP, increased 0.6 percent, the most in two years, after showing no growth in the first quarter. Also, public investment rose 1.8 percent, the most since Q2 2017 and faster than a preliminary 1 percent.

Exports of goods and services were flat (vs -2 percent in Q1), while imports jumped 1.7 percent (vs -4.3 percent in Q1).

On an annualized basis, the economy grew 1.3 percent in the second quarter, weaker than the preliminary reading of 1.8 percent and after a revised 2.2 percent expansion in the previous quarter.

Japan Q2 GDP Growth Revised Lower to 0.3%

Cabinet Office | Rida Husna | rida@tradingeconomics.com
9/9/2019 11:28:16 AM