Jiabimei
Japan’s GDP in the first quarter of 2024 fell by 0.5% quarter-on-quarter, in line with preliminary data, but the growth in the fourth quarter was reversed after an upward revision of 0.1%.
In the first quarter of 2024, the Japanese economy shrank by 1.8% on an annualized basis. Preliminary data are Following an upward revision to fourth-quarter growth of 0.4%, the decline was 2.0%, slightly higher than market forecasts for a 1.9% decline.
Private consumption fell for the fourth consecutive quarter (-0.7%, in line with preliminary data and market consensus after falling 0.4% in the fourth quarter), the largest decline in three quarters as price pressure increased and wage growth was tepid magnitude, and the impact of the first earthquake of the year.
Capital spending remains weak (-0.4%, compared with a 0.8% decline first reported and forecast for a 0.7% decline after rising 1.9% in the fourth quarter) as the Daihatsu Motor scandal reduces vehicle production.
In a separate report, the country’s current account surplus in April also exceeded expectations, rising to 2,050.5 billion yen in April 2024 from 1,895.4 billion yen in the same month last year.
Meanwhile, investors are looking forward to the Bank of Japan’s policy decision on Friday.
The Nikkei 225 index (NKY:IND) rose 0.4% to above 38,800 points on Monday, recouping the previous session’s losses as investors cheered data showing Japan’s economy shrank less than expected in the first quarter. (USD:JPY) is trading at 157.131.
