Japan lowers Q1 economic growth due to weak demand and rising prices

Posted on July 5, 2024   |  

Japan revised its Q1 economic growth downward to a contraction of 2.9% annually, a revision from previous estimates.

A survey by the Bank of Japan showed modest improvements in business sentiment among large and medium-sized manufacturers.

The survey also revealed persistent weakness in domestic and international demand across various industries.

Public investment saw a 1.9% contraction, contrasting with an earlier estimated growth of 3%.

Private residential investment, including housing, declined by 2.9%, revised from an earlier projected 2.5% decrease.

Japan narrowly avoided a technical recession with a 0.1% annual growth in the previous quarter and a 1.8% growth for 2023.

The depreciation of the Japanese yen against the US dollar benefited exporters but increased costs for imported commodities like oil and gas, affecting economic conditions.