Forex - Japan GDP Data Review: Q3 GDP growth stabilizes, but misses estimates


 01:23 (GMT) 15 Nov

  [Economic Data]

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Japan GDP Data Review: Q3 GDP growth stabilizes, but misses estimates (0100-TZKL-C01)

Japan's economy continued its streak of growth for the seventh straight quarter, marking the longest expansion since 2001. Q3 GDP growth came in at 1.4%q/q SAAR, which slows down from the strong revised 2.6% surge in Q2, but stronger than our (+1%q/q SAAR) and lower than consensus (+1.5%q/q SAAR) estimates.

Growth was mainly driven by external demand, with the net exports contributing 0.5% in this quarter compared to -0.2% in previous quarter. Exports rose by 6.0%q/q compared to -0.8%q/q in the previous quarter. The recovery in exports helped offset the underwhelming domestic demand, as private consumption fell 1.8% q/q in the third quarter from 2.8%q/q in the second quarter. External demand is likely to be supported by the weak JPY. Consumer spending is expected to rise in the next quarter with the economy operating near full employment, which should translate into wage growth and consumption in time to come. In terms of public investment, it fell by 9.7%q/q in this quarter, a visibly stark drop compared to a 25.3%q/q in the second quarter.


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