According to the preliminary statistics released by the Cabinet Office of Japan on the 16th, Japan's real gross domestic product (GDP) fell by 0.5% month-on-month in the first quarter of this year, and the decline was 2.0% on an annualized basis, which was negative again after turning positive in the fourth quarter of last year.
In the first quarter of this year, both domestic and external demand contributed negatively to Japan's economic growth. According to the data, domestic demand fell by 0.2% month-on-month in the current quarter, of which personal consumption, which accounts for more than half of the Japanese economy, fell by 0.7% month-on-month, with negative growth for four consecutive quarters; Enterprise equipment investment fell by 0.8% month-on-month, and private residential investment fell by 2.5% month-on-month.
According to the data, external demand fell by 0.3% month-on-month in the current quarter. Japan's exports fell 5.0% m/m in the quarter, the first decline in four quarters, due to lower vehicle shipments. Imports fell 3.4% month-on-month.
According to a report by Chinanews.com, citing Japanese TV on the 16th, in January this year, Toyota Group's subsidiaries were exposed to data fraud in the car engines they produced, and Toyota suspended the shipment of 10 related models. Personal consumption, which accounts for more than half of the Japanese economy, has weakened due to a decline in the activities of Japanese automakers. In addition, the Noto Peninsula earthquake in January this year was also one of the factors influencing the decline in GDP in the first quarter.
Shinichiro Kobayashi, chief researcher of Mitsubishi UFJ Research and Consulting, believes that Japan is experiencing a historic depreciation of the yen, and prices are also maintaining an upward momentum, and Japan's domestic consumption may be further affected in the future.
Source: Financial Times client
Reporter: Han Xuemeng
Editor: Yu Siqing
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