Japan’s Q1 GDP fell 1.8 pct, less than initially expected

Japan's economy shrank at an annualized pace of 1.8 percent in the January-March period, sliding less than initially estimated, due to an upward revision to corporate capital investment, government data showed on Monday. The world's third-largest economy's gross domestic product (GDP) was revised upward from a preliminary figure of two percent contraction released last month, according to the Cabinet Office. However, Cabinet Office confirmed the first contraction of the GDP in two quarters following a revised 0.4 percent growth in the October-December quarter of 2023. On a quarterly basis, GDP dropped 0.5 percent in the three months ended March 31 from the previous quarter, unchanged from the preliminary figure. Corporate capital spending, a key pillar of domestic demand, was revised up to minus 0.4 percent from an initial reading of 0.8 percent fall. Personal consumption, which makes up more than half of Japan's GDP, declined 0.7 percent, unchanged from the previous report. Analysts are watching to see if recent wage hikes and fixed-amount tax cuts taking effect from June can boost consumption even as prices continue to rise, public broadcaster NHK said. Source: Kuwait News Agency