TOKYO, Dec 8 : Japan’s economy contracted faster than initially reported in July-September from the previous three-month period, revised government data showed on Monday.
The revised figure for gross domestic product from the Cabinet Office showed the economy shrank an annualised 2.3 per cent, the fastest contraction since the third quarter of 2023.
That compared with economists’ median forecast for a 2.0 per cent contraction and an initial reading of 1.8 per cent.
On a quarter-on-quarter basis, GDP contracted 0.6 per cent, compared with the median forecast of 0.5 per cent and initial estimate of 0.4 per cent.
Still, economists viewed the revised figures as having only a marginal impact on the Bank of Japan’s next interest rate decision. The BOJ is likely to raise its policy rate at its December 18-19 meeting and the government is set to tolerate the decision, sources have told Reuters.
Private consumption, which accounts for more than half of the economy, inched up a revised 0.2 per cent in July-September, versus 0.1 per cent in the preliminary reading.
The capital expenditure component of GDP, a barometer of private demand, fell 0.2 per cent, lowered from the initial estimate of a 1.0 per cent rise. Economists had estimated a 0.4 per cent uptick.
External demand, or exports minus imports, knocked 0.2 per centage points off growth, unchanged from the preliminary reading. Domestic demand shaved 0.4 per centage point, compared with a 0.2 per centage point drag in the initial figure.