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Kagenmi
Japan’s GDP shrank 0.5% q/q in Q1 of 2024, matching flash data while reversing from an upwardly revised 0.1% growth in Q4.
The Japanese economy contracted 1.8% on an annualized basis in Q1 of 2024, compared with a preliminary reading of a 2.0% fall and after an upwardly revised 0.4% growth in Q4, slightly above market forecasts of a 1.9% decline.
Private consumption fell for the fourth straight quarter (-0.7%, in line with the initial reading and market consensus, after a 0.4% drop in Q4), pointing to the steepest decline in three quarters, due to elevated price pressure, tepid wage growth, and the impact of an earthquake on the first day of the year.
Capital expenditure stayed weak (-0.4% vs the first print of a 0.8% fall and forecasts of a 0.7% fall, after a 1.9% rise in Q4), amid a reduction of auto production after a scandal at Daihatsu Motor.
In a separate release, the country’s current account surplus also exceeded forecasts in April, increased to JPY 2,050.5 billion in April 2024 from JPY 1,895.4 billion in the same month last year.
Meanwhile, investors look forward to the Bank of Japan’s policy decision on Friday.
The Nikkei 225 (NKY:IND) rose 0.4% to above 38,800 on Monday, recouping losses from the previous session, as investors cheered data showing Japan’s economy contracted less than expected in the first quarter. (USD:JPY) is trading at 157.131.