Japan’s Q3 GDP worse than estimates, down by 0.6%: final data

Gross domestic product for the third quarter shrank 0.6% from the previous quarter, lower than the preliminary forecast of a 0.3% decline.

inv-investing-in-japan

Japan’s economic growth for the third quarter was weaker than previously forecast, national data from the Cabinet Office showed on Monday.

Gross domestic product (GDP) for the third quarter shrank 0.6% from the previous quarter, lower than the preliminary forecast of a 0.3% decline and economists’ expectations of a 0.5% fall. For the second quarter, GDP grew by 0.7%.

Private investments fell by 2.8% from the previous quarter, worse than the 0.2% contraction in the preliminary estimate.

Domestic demand declined by 0.6% while private demand shrank by 0.7%, and private consumption which accounts roughly 60% of GDP, fell by 0.2%.

On a year-on-year basis, GDP shrank by 2.5%, compared to the earlier estimate of a 1.2% decline due to a fall in capital expenditure. For the second quarter, GDP grew by a revised 2.8% expansion.

Economists expect the country to rebound for the last quarter of the year, as the third quarter’s performance was met with natural disasters which affected businesses.

Japan was hit by a slew of natural disasters from July to September, such as an earthquake in the north which affected supply lines, flooding in the western parts of the country due to heavy rainfall, and a typhoon.

The momentary shutting down of Kansai International Airport due to the typhoon had affected business and cargo shipments.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about