Japan Oct.-Dec. GDP Growth Projected at 1.6 Pct

Tokyo, Feb. 3 (Jiji Press)–Japan’s real gross domestic product in October-December last year likely grew 0.4 pct from the previous quarter for an annualized rise of 1.6 pct, according to the average estimate by 10 private think tanks. The Japanese economy is believed to have returned to positive growth for the first time in two quarters, partly thanks to a pickup in housing investment. The Cabinet Office is scheduled to release preliminary GDP data on Feb. 16. In October-December, private consumption, the main pillar of domestic demand, is estimated to have increased only 0.1 pct. “Consumption continues to lack strong momentum as inflation persists,” said Yoshiki Shinke, a senior economist at Dai-ichi Life Research Institute Inc. Meanwhile, capital expenditure is expected to post an increase of 0.7 pct, supported by software investment for labor-saving purposes. Housing investment, which fell sharply in the previous quarter after stricter energy-efficiency standards took effect, is forecast to rebound 3.9 pct. Exports, which also logged a steep decline in the previous quarter, are expected to stop falling after U.S. President Donald Trump’s administration lowered auto tariffs in September. END [Copyright The Jiji Press, Ltd.]