The Japanese economy shrank an annualized 2.5 percent on quarter in the third quarter of 2018, much worse than preliminary estimates of a 1.2 percent fall and forecasts of a 1.9 percent decline. It is the steepest contraction since the second quarter of 2014 and follows a downwardly revised 2.8 percent growth in the second quarter. Capital expenditure slumped 10.6 percent, private spending went down 0.7 percent and net external demand contributed negatively (-0.3 percentage points). GDP Growth Annualized in Japan averaged 2.06 percent from 1980 until 2018, reaching an all time high of 12.90 percent in the fourth quarter of 1989 and a record low of -17.80 percent in the first quarter of 2009.
GDP Growth Annualized in Japan is expected to be 1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Annualized in Japan to stand at 1.28 in 12 months time. In the long-term, the Japan GDP Growth Annualized is projected to trend around 2.90 percent in 2020, according to our econometric models.