Japan: Q1 GDP details are grim – ABN AMRO
|Bill Diviney, senior economist at ABN AMRO, points out that Japan’s Q1 GDP surprised to the upside at 2.1% qoq annualised, well above consensus (-0.2%) and their (0.5%) expectations, as well as trend growth (c.1%), but the details paint a far less rosy picture of the economy.
Key Quotes
“Both private consumption and business fixed investment fell on the quarter, each subtracting 0.2pp from annualised growth. At the same time, the main positive contributions came from net exports (+1.5pp) and inventories (+0.6pp). However, exports actually plunged -9.4% on the quarter, and the only reason for the positive trade contribution is that imports fell at a much faster pace, by -17.2%.”
“Similar to other regions, the strength in Q1 looks unsustainable – The story of unusual net export and/or inventory build contributions is consistent with what we have seen in some other advanced economies, notably the US and the UK, and suggests the current strength in global growth is unsustainable.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.