Japan Q4 GDP revised up to slight expansion, economy avoids recession
technical recession, revised government GDP data showed on Monday, even though the upward change in the fourth quarter was weaker than expected and highlighted concerns about the sluggish economic recovery.
Japan's revised gross domestic product (GDP) expanded at an annualised clip of 0.4% in the October-December period from the previous quarter, better than the initial estimate for a 0.4% contraction, according to the Cabinet Office.
It was, however, below economists' median forecast for a 1.1% uptick in a Reuters poll. On a quarter-on-quarter basis, GDP grew 0.1%, compared with the initial 0.1.% drop reading and a median forecast for a 0.3% rise.
«The headline is an upward revision, but domestic demand is remains lacklustre, particularly in consumption,» said Saisuke Sakai, senior economist at Mizuho Research and Technologies.
Capital expenditure, which increased 2.0% quarter-on-quarter, anchored the upward revision. It was better than better than the preliminary 0.1% decrease but still below a median market forecast of a 2.5% rise.
Private consumption, which makes up about 60% of Japan's economy, fell 0.3% in October-December, slightly worse than the 0.2% drop in the initial estimate. Seafood and household appliances contributed to downward pressure in the category, a Cabinet Office official said.
LOOMING BOJ DECISION
The upward revision came amid growing market expectations that the Bank of Japan could ditch its negative interest rates as early as
