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Japan’s economy worse than expected in the first quarter

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Japan’s economy is doing worse than analysts’ forecasts. The picture shows a container ship at a quay in Kawasaki near the Japanese capital Tokyo. Photo: Koji Sasahara / AP / NTB

Of NTB | 16.05.2024 03:19:32

Economy and business: Gross domestic product (GDP) in the world’s fourth largest economy was expected to fall by just 0.3 percent in the first quarter of the year, according to analysts’ forecasts.

Exports fell 5 per cent after growing 2.8 per cent in the last quarter of last year. Imports fell 3.4 per cent in the first three months of the year, according to figures presented by the Japanese government on Thursday.

Compared to the first quarter of last year, the GDP decline was 2 percent in the first quarter of the year, while analysts had envisioned a decline of 1.2 percent when comparing the first quarter of last year and the same quarter this year, according to Bloomberg News.

On January 1, a major earthquake struck the Noto Peninsula, causing economic ripple effects by halting production at the Toyota-owned Daihatsu plant.

Revised figures presented on Thursday show zero growth in the last quarter of last year, a downward adjustment from growth of 0.1 per cent. In the quarter before that, from July to September last year, the country’s GDP shrank by 0.9 per cent, revised figures show on Thursday. For this quarter, a decrease of 0.8 per cent was initially stated.

At the same time, inflation is increasing in the country, which in March led to the central bank raising the key interest rate for the first time in 17 years.

(© NTB)

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