Japan’s GDP rebounds in Q4
Growth expanded by 1.4% compared to a year ago, driven by higher capital expenditure spending and private consumption.
Japan’s economy expanded by 1.4% on a year-on-year basis for the fourth quarter, matching economists’ expectations, government data revealed on Thursday.
The growth in the last quarter of 2018 reverses from a 2.6% contraction in the third quarter which was affected by natural disasters that temporarily stalled factory production.
Compared to the previous quarter, Japan’s gross domestic product (GDP) expanded by 0.3%, below expectations of a 0.4% gain. The third quarter had contracted by 0.7%.
For the fourth quarter, real exports rose by 0.9% from the previous quarter, the fastest increase seen in a year.
Experts are still concerned with the impact on exports caused by the trade conflict between the United States and China. They are expecting growth this year to slacken from the previous two years.
For the fourth quarter, private consumption, which makes up around 60% of GDP, rose by 0.6% for the fourth quarter, following a 0.2% fall in the previous quarter. Economists had expected a 0.8% increase for the last quarter of the year.
Capital expenditure rose by 2.4%, compared with a 2.7% contraction in the previous quarter.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets