Tokyo: Japan’s economic growth in the October to December 2022 quarter was downgraded, owing to private consumption increasing less than previously thought, the government said in a report on Thursday.
According the Cabinet Office, the country’s economic expansion was downwardly revised from 0.6 per cent to an annualised real 0.1 per cent, reports Xinhua news agency.
On an inflation-adjusted basis, real gross domestic product (GDP) on a quarterly basis was revised down from 0.2 per cent to 0.02 per cent, the government also said.
Private consumption, which accounts for roughly half of Japan’s GDP, slowed from 0.5 per cent in the government’s preliminary report, to 0.3 per cent.
This has been due to soaring inflation resulting in rising price points in shops and supermarkets, as well as energy bills, with the yen’s weakness further inflating prices and impacting household spending.
Capital spending, also a key driver of the economy, remained unchanged from its initial reading, dropping 0.5 per cent in the October to December period, as rising import costs, also punctuated by the country’s weak currency, has seen companies rein in their investment outlays.
Public investment, however, edged higher than a preliminary drop of 0.5 per cent, to stand at 0.3 per cent in the recording period, the Cabinet Office said.
In terms of nominal GDP, the government said it grew 1.2 per cent, downwardly revised from 1.3 per cent, and stood at 4.7 per cent on an annualised basis, down from a preliminary 5.2 per cent.
–IANS