Japan GDP Growth Annualized

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. Figures came slightly above market forecasts of a 1.9% decline, as a fall in business spending was not as severe as initially anticipated. At the same time, private consumption remained weak, declining for the fourth consecutive quarter and 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. Further, external demand deteriorated, with exports falling faster than imports. That's compared with a positive contribution from net trade in the previous period. Simultaneously, government spending was muted.