MNI DATA IMPACT: Japan GDP Higher For 2nd Straight Quarter

Japan's economy grew for a second straight quarter in the last three months of 2020, rising 3.0% q/q, or an annualized 12.7%, boosted by private consumption and capital investment, according to preliminary GDP data released by the Cabinet Office on Monday.

GDP growth was higher than expected by analysts, which pointed to growth of 2.2% q/q, or an annualized 8.9% and followed a rise of 5.3% q/q, or an annualized 22.7% in Q3.

Private consumption, which accounts for about 60% of Japan's GDP, rose 2.2% q/q in Q4, after an unrevised 5.1% rise in Q3. The median forecast was for a 1.5% q/q rise.

Business investment rose 4.5% q/q in Q4, the first rise in three quarters following -2.4% in Q3. The median forecast was for a 3.1% rise.

Net exports of goods and services -- exports minus imports -- made a positive 1.0 percentage point contribution to total domestic output, the second straight positive contribution after pushing Q3 GDP growth up by 2.6 percentage points.

Exports rose 11.1% q/q in Q4 after rising 7.4% in Q3. Imports rose 4.1% after falling 8.2% in the previous quarter.

Private-sector inventories contributed a negative 0.4 percentage points to Q4 GDP following -0.2 percentage point in Q3, while public investment rose 1.3% on quarter, contributing +0.1 pp to GDP.