Japan's final GDP Q4: 2.8% vs 5.3% prior

Japan's Gross Domestic Product arrived for the quarter as follows:

Japan GDP

Real GDP +2.8% QoQ (prelim +3.0%, reuters poll +3.0%).
Revised real GDP annualised +11.7% (prelim +12.7%, poll +12.8%).
Revised capex +4.3% QoQ (prelim +4.5%, poll +4.1%).
Revised private consumption +2.2% QoQ (prelim +2.2%).
Revised net external demand contribution to GDP +1.1 pct point (prelim +1.0 pct point).
Revised domestic demand contribution +1.8 pct point (prelim +2.0 pct points).

The yen is stable heading into the Tokyo open despite this data meaning that the economy shrank over the full year, its first contraction since 2009. 

The conditions are such that Japan will probably not be able to avoid negative growth in the first quarter of 2021 either and consumption is not likely to recover at a strong enough pace considering Japan's slow to the mark vaccine rollout. 

In related news today, Jan household spending fell at fastest month/month pace since Oct 2019.

Description

The Gross Domestic Product released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time. GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing. A high reading or a better than expected number is seen as positive for the JPY, while a low reading is negative.