MNI DATA IMPACT: Japan Q1 GDP Falls; 2nd Straight Contraction

--Japan Q1 Real GDP -0.9% Q/Q; Median -1.3%, -3.4% Annual (Median -5.0%) 

--Japan Q1 Domestic Demand Contribution -0.7 PP 

--Japan Q4 Real GDP Revised to -1.9% Q/Q, -7.3% Annualized

     TOKYO (MNI) - Japan's economy contracted for the second straight quarter in

Q1, falling 0.9% q/q, or an annualized -3.4%, weighed by weak demand in the

private sector as the coronavirus outbreak spread, preliminary GDP data released

by the Cabinet Office Monday showed.

     The Q1 decline was better than the MNI median forecast that pointed to a

contraction of 1.3% q/q, or an annualized -5.0%. The decline followed a fall of

1.9% q/q, or an annualized -7.3% in Q4.

     The key points from the latest GDP data:

     --Private consumption, which accounts for about 60% of Japan's GDP, fell

0.7% q/q in Q1, after a revised 2.9% fall in Q4. The median forecast was for a

1.7% q/q decline.

     --Business investment fell 0.5% q/q in Q1, the second straight drop

following -4.8% in Q4. The median forecast was for a 1.4% fall.

     --Net exports of goods and services -- exports minus imports -- made an

negative 0.2 percentage point contribution to total domestic output, the first

negative contribution in two quarters after pushing Q4 GDP growth up by 0.5

percentage point.

     --Exports fell 6.0% on quarter in Q1 after rising 0.4% in Q4. Imports fell

4.9% after falling 2.4% in the previous quarter.

     --Private-sector inventories contributed an negative 0.0 percentage point

to Q1 GDP following +0.0 percentage point in Q4, while public investment fell

0.4% on quarter, contributing -0.0 pp to GDP.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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