This morning Japan’s first preliminary estimate of Q1 GDP was published, which showed that growth dropped by 0.2% q/q, marking the first decline since 2015Q4, notes the research team at Rabobank.
“Lower domestic demand was the main driver of the drop, while net exports contributed slightly positive. Following this, it seems that the best growth streak since the late 1980s has come to an end. But one has to note that there previously have been significant revisions to quarterly GDP data.”
“For the quarters ahead we expect growth to rebound based on accommodative monetary and fiscal conditions. But given that the economy is already running into capacity constraints (BoJ’s own output ‘gap’ estimate surged to +1.5% in 2017Q4), we foresee slower growth than last year.”
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.