Japan Q4 GDP Growth Below Expectations


The Japanese economy advanced 0.2 percent on quarter in the fourth quarter of 2016, following 0.3 percent growth in the previous period and below market expectations of a 0.3 percent expansion, according to preliminary estimates. It was the fourth consecutive quarter of growth, boosted by exports, government spending and private non-residential investment while household consumption was flat.

Compared with the third quarter of the year, external demand added 0.2 percentage points to growth, as exports of goods and services expanded 2.6 percent (2.1 percent in Q3) while imports advanced for the first time in a year by 1.3 percent (-0.2 percent in Q3).
Non-residential investments rebounded (0.9 percent from -0.3 percent in Q3),  adding 0.1 percentage points to growth. In contrast, private residential investment contracted 0.1 percent (2.4 percent in Q3). Private consumption was flat, following 0.3 percent growth in the previous period, making no contribution to growth.

Government consumption grew 0.4 percent (0.3 percent in Q3), while public investments fell 1.8 percent (-0.7 percent in Q3), making no contribution to growth.

On an annualised basis, Japan's economy grew 1 percent in the fourth quarter of 2016, following an upwardly revised 1.4 percent expansion in the previous period and below market expectations of 1.1 percent growth. It was the fourth straight quarter of expansion, led by external demand.

Cabinet Office | Yekaterina Guchshina | yekaterina@tradingeconomics.com
2/13/2017 11:59:37 AM