The increase was driven largely by a 2.2% rise in private consumption, which accounts for more than half of Japan’s GDP, a poll showed
Japan’s economy likely rebounded in the final three months of 2021 as consumption rose during a drop off in COVID-19 cases, a Reuters poll showed, though it could slide back into contraction this quarter after a spike in Omicron variant infections.
The poll also showed wholesale prices continued to rise in January from a year earlier, a sign higher energy and raw material costs will keep eroding corporate profits.
The world’s third-largest economy likely grew an annualised 5.8% in October-December, rebounding from a 3.6% contraction in the third quarter, according to a median forecast of 18 economists polled by Reuters.
The increase was driven largely by a 2.2% rise in private consumption, which accounts for more than half of Japan’s gross domestic product (GDP), the poll showed.
Capital expenditure likely gained 0.5%, while external demand added 0.3% point to GDP growth in October-December after neither adding nor shaving off the previous quarter’s figures, the poll showed.
Japan’s economy clearly turned up in October-December, as foot traffic recovered thanks to the lifting of COVID-19 curbs and falling infection cases, said economists at SMBC Nikko Securities.
Separate data will likely show wholesale prices rose 8.2% in January from a year earlier, slowing for the second straight month but still hovering near the record 9.0% hit in November, the poll showed.
Household spending likely rose 0.3% in December from a year earlier, marking the first rise in five months, the poll showed.
The government will release preliminary October-December GDP data on Feb. 15 and household spending data on Feb. 8.
The Bank of Japan will release the wholesale price data on Feb. 10.
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.