Japanese economic growth data for Q1 2025 (January - March) - recovery in Japan proving tenuous once again
-0.2% q/q for real GDP
- vs. expected -0.1% and prior +0.6%
-0.7% annualised q/q, first fall in a year
- expected -0.2%, prior +2.4%
Private Consumption 0.0% q/q
- expected +0.1%, prior +0.1%
Capital Expenditure +1.4% q/q a bright point in the data
- expected +0.8%, prior +0.8%
More:
- External demand contribution to GDP -0.8%, vs. expected -0.6%
- Exports -0.6% q/q
- Domestic demand contribution to GDP +0.7%
- GDP deflator +3.3% y/y (this is an inflation indicator)
A shrinking economy ... even before the trade war hit in force ... is going to cause consternation at the Bank of Japan. It'll delay further rate hikes.
