Tokyo, Aug. 17 (Jiji Press)–Japan’s gross domestic product in April-June grew 0.3 pct from the previous quarter after price and seasonal adjustments, the Cabinet Office said in a preliminary report Monday. The reading represents a 1.1 pct annualized rise, marking the third straight quarter of economic expansion. Growth was backed by a decline in imports, partly reflecting reduced oil imports from the Middle East amid deteriorating conditions around Iran, as well as by increased government spending. Private consumption, the main pillar of domestic demand, posted a decline of less than 0.1 pct. Although the drop was slight, it was the first negative reading in eight quarters, pressured by lower tobacco sales following price hikes for heated tobacco products and reduced electricity consumption for heating due to higher temperatures. Meanwhile, consumption was supported by stronger vehicle sales after the abolition of the environmental performance tax on automobile purchases and by last-minute demand for air conditioners ahead of the introduction of stricter energy-saving standards in April next year. Capital investment fell 1.2 pct, down for the second consecutive quarter, reflecting a decline in spending on research and development services following patent transfers abroad by pharmaceutical companies. Government spending rose 1.6 pct, up for the fifth consecutive quarter, thanks to higher medical expenses following revisions to medical service fees, as well as an expansion of free high school tuition and the introduction of free school lunches at public elementary schools. Public investment fell 0.1 pct, the first decline in two quarters. Exports rose 0.5 pct, up for the third consecutive quarter despite lower goods shipments, as exports of research and development services expanded due to overseas patent transfers. External demand boosted GDP by 0.5 percentage point, also thanks to a 1.5 pct decline in imports. In nominal terms, April-June GDP rose 1.2 pct quarter on quarter, for an annualized increase of 4.8 pct. END [Copyright The Jiji Press, Ltd.]
Japan April-June GDP Up Annualized 1.1 Pct
Related Posts
India, stampede near a temple in Bihar: 7 dead
(Adnkronos) – At least seven people died and many others were injured today due to a stampede in a temple located in the eastern Indian state of Bihar: local authorities reported that the stampede occurred after an electrical cable broke, causing panic
Japan to Provide Relief Goods to Quake-Hit Colombia
Tokyo, Aug. 17 (Jiji Press)–The Japanese government decided Monday to send tents, blankets and other emergency relief supplies to Colombia, which was struck by a powerful earthquake last week. The decision came at the request of the South American country. The supplies
