TOKYOMay 16 (News On Japan) – The Japanese Cabinet has announced that real GDP growth for the first quarter of this year, from January to March, will be minus 2.0% on an annual basis.
The halt in car production and deliveries had a significant impact on GDP, leading to negative growth for the first time in two quarters.
Real GDP growth from January to March was minus 0.5% compared to the previous three months, translating into a year-on-year decline of 2.0%.
The production and shipment disruptions caused by Daihatsu Motor’s certification fraud have significantly reduced personal consumption and capital investment.
Personal consumption, which makes up more than half of GDP, has been negative for the first time in fifteen years in a row.
However, within personal consumption, eating out remained strong, and food also made a positive contribution.
Shinichiro Kobayashi, principal researcher at Mitsubishi UFJ Research and Consulting, noted: “If nominal wages start to rise this fiscal year, the currently sluggish personal consumption may gradually improve, leading to a moderate economic recovery.”
On the other hand, there are concerns that the historically weak yen could further increase prices, impacting consumer confidence.
Source: ANN
