Japan GDP Growth Rate

Japan's GDP shrank 0.5% qoq in Q1 of 2024, matching flash data while reversing from an upwardly revised 0.1% growth in Q4. Private consumption, which accounts for more than half of the economy, fell for the fourth straight quarter (-0.7%, in line with the initial reading and market consensus, after a 0.4% drop in Q4), marking the steepest fall in 3 quarters as consumers continued to reduce their spending in the face of expensive costs of living and sluggish wages, and after a strong quake that struck Noto peninsula in January. Meantime, capital expenditure stayed weak (-0.4% vs the first print of a 0.8% fall and forecasts of a 0.7% fall, after a 1.9% rise in Q4), amid a reduction of auto production after a scandal at Daihatsu Motor. Net trade was a drag on the GDP, subtracting 0.2% percentage points as exports (-5.1% vs 2.8%) slipped more than imports (-3.3% vs 1.8%). On the other hand, government spending grew by 0.2%, unchanged from the flash print and after a 0.1% drop in Q4).