Japan GDP shrinks 6.3% in October-December

Feb 17, 2020

Business
Japan GDP shrinks 6.3% in October-December

Tokyo (Japan), Feb 17: New figures from the Japanese government show that GDP shrank in the final quarter of last year, as the consumption-tax increase weighed on consumer spending.
GDP fell by an annualized 6.3 percent in the October-December period. It was the first contraction in five quarters. It was also the biggest fall since the tax was last raised in 2014. In the second quarter of that year, GDP fell 7.4 percent.
Personal consumption makes up more than half of Japan's GDP. It fell by 2.9 percent following the increase in the tax from 8 percent to 10 percent at the beginning of October last year. Sales of cars and electrical appliances tumbled. A warm winter and a series of powerful storms contributed to the drop.
Corporate investment was down by 3.7 percent. Exports fell by 0.1 percent. Both figures were largely due to the global economic slowdown caused by the trade dispute between the US and China.
Some experts are forecasting another weak quarter for January to March if the coronavirus outbreak isn't contained soon.
Source: NHK World