Japan's GDP growth lower than initially estimated

|By:, SA News Editor

Japan has revised down its Q4 GDP growth calculation to 0.2% from an initial 0.3%, with the economy held back by weaker-than-estimated capex and consumer spending.

Annualized GDP was +0.7% vs +1%. (PR)

The current-account deficit increased to a record ¥1.59T ($15.4B) in January from ¥638.6B in December. (PR)

"Capital spending remains weak and exports are not coming back to strengthen the recovery, and without support in these areas, Japan's economy is going to contract significantly in the second quarter," says economist Yoshimasa Maruyama. "The negative effect from the (upcoming) sales tax rise could be worse than the BOJ and government expect."

The Nikkei is -0.9%, while the USJ-JPY is -0.1% to ¥103.12.

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