Japan Jan.-March GDP Revised Down to Annual 1.8 Pct Rise

Tokyo, June 8 (Jiji Press)–Japan’s economy grew at an annualized rate of 1.8 pct in January-March from the previous quarter in inflation-adjusted real terms, weaker than the earlier reported 2.1 pct rise, reflecting a downward revision in capital spending, revised government data showed Monday. In nonannualized terms, the nation’s GDP grew a revised 0.45 pct, compared with the 0.51 pct rise in a preliminary report released last month, the Cabinet Office said. The country’s GDP expanded for the second straight quarter. Still, downside risks are likely to intensify in April-June as the situation in the Middle East remains turbulent. With the inclusion of the results of the Finance Ministry’s corporate survey released earlier this month, quarter-on-quarter growth of capital spending stood at minus 0.7 pct, against the preliminary figure of a 0.3 pct increase, as software investments for labor-saving and other purposes were weak. Private consumption, the main pillar of domestic demand, went up 0.35 pct, revised up from the preliminary reading of a 0.27 pct rise, mainly due to a smaller drop in automobile sales. Growth in housing investment was revised up to 0.9 pct from 0.5 pct, led by brisk renovation demand. Government spending climbed 0.3 pct, revised up from 0.1 pct, and public investment rose 1.5 pct, revised up from the preliminary increase of 1.4 pct. Exports increased 1.8 pct, revised up from 1.7 pct, while imports rose 0.4 pct, down from the preliminary rise of 0.5 pct. Nominal GDP, which reflects price changes, was up 0.6 pct for an annualized rise of 2.5 pct, down from an increase of 0.8 pct and an annualized rise of 3.4 pct in the preliminary data. In fiscal 2025, which ended in March, real GDP rose 0.8 pct from the previous year. Nominal GDP grew 4.1 pct to 669,369.2 billion yen, hitting a record high for the fifth consecutive year. END [Copyright The Jiji Press, Ltd.]