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MNI BRIEF: Japan Q2 GDP To Rise 0.8% Q/Q, 3.3% Annualised

(MNI) Tokyo

Japan's economy for the April-June period is expected to have expanded 0.8% q/q, or 3.3% annualised, for the third straight rise following a recovery of net exports and public investment and despite private consumption and capital investment slowing, economists predicted.

The higher GDP would follow Q1's increase of 0.7% q/q, or 2.7% annualised. Economists expected private consumption, which accounts for about 60% of GDP, to have risen 0.1% q/q, decelerating from Q1's 0.5%. Capital investment during Q2 is expected to have risen 0.4% q/q, slowing from Q1's 1.4%, while public investment is expected to have risen 1.0% q/q in the second quarter, slowing from 1.5%.

They expect net exports of goods and services to have made a positive 1.0 pp contribution to total domestic output, rising from its 0.3 pp contribution in the first quarter. In future, economists expect Japan’s economy to grow in Q3 due to solid private consumption, including spending by inbound tourists, and exports.

The Cabinet Office will release preliminary GDP data for Q2 at 0850 JST on Aug 15 (2350 GMT Aug 14).

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

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