Japan GDP On Tap For Wednesday

  • Japan GDP On Tap For Wednesday

Japan GDP On Tap For Wednesday

Japan's economy likely slowed to a crawl, or possibly even contracted slightly at the start of this year, which would break the longest run of growth seen for decades and thwart Prime Minister Shinzo Abe's reflationary "Abenomics" polices.

Japan's economy, the world's third largest, shrank by 0.6 percent on an annualized basis, a much more severe contraction than the median estimate for an annualized 0.2 percent decline.

Japan's economy contracted at an annualized rate of 0.6%, marking the end of eight consecutive quarters of economic expansion.

Economists say while the contraction is temporary, the rebound will not be almost as strong as previous quarters.

The median estimate was for consumer spending to remain unchanged.

Japan's economy relies on exports of electronics, among other products.

The limp first-quarter performance was spread across different areas of the economy, according to Marcel Thieliant, senior Japan economist at research firm Capital Economics.

In the first quarter exports expanded by 0.6% after 2.2% growth in the previous quarter. However, there are concerns that trade friction with the USA could affect demand for exports.

Export demand added 0.1% to first quarter GDP but the rate of growth is slowing.

Economists don't expect the period of contraction to last long.

Maruyama of SMBC Nikko Securities.