Japan GDP decreased by 0.2% from January to March

gross domestic product (GDP) Japan Narrowed 0.2% between January and March Compared to the previous quarter, according to data released by the executive this Wednesday. Japanese economy slumped in the first quarter of the year mainly due to stagnation in domestic consumptionand after closing the last quarter of 2021 with a quarterly increase of 0.9%, according to preliminary data from the Japanese Cabinet Office. Compared to the first quarter of 2021, the world’s third largest economy grew by 0.2%.

Inflation-adjusted data shows the Japanese economy is still not recovering from its pre-pandemic level, after alternating advances and quarterly recessions since the start of 2021. The new contraction is attributed to the impact of global inflation on the domestic market. GDP components suffered in the first half of the year as a result of the anti-contagion restrictions currently in place to curb the ochron variant of the coronavirus in Japan.

Main component of household expenditures gross domestic productstayed flat Institutional equity investment fell 0.6% between January and March. Government investment also fell 3.6% after the Government launched a multimillion-dollar relief plan for the economy late last year and ahead of another major stimulus plan scheduled to be approved in the coming weeks.

Export value, another main component of the country’s economy, increased by 1.1% compared to the previous quarter thanks to the recovery in global demand. Due to the increase in raw material prices and the depreciation of the yen against other currencies, the rate of imports increased by 3.4%, which decreased by 0.4 points from the total GDP calculation.

Source: Informacion

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