Japan’s economy surprised everyone by growing last quarter

The economy expanded by 0.5% this quarter. But how did this 0.5, has interesting background.

With imports falling faster than exports, net exports contributed 0.4 percentage points to the quarterly GDP increase.

The Cabinet Office said imports slumped by 4.6%, the steepest decline since the first quarter of 2009, indicating a sharp drop in demand.

Exports also fell 2.4%, the largest quarterly decline since the June quarter of 2015.

With imports falling faster than exports, net exports contributed 0.4 percentage points to the quarterly GDP increase.

Inventories also added 0.1 percentage points, helping to offset weakness in other parts of the economy, including household consumption, the largest component of Japanese GDP at around 60%.

 

Japan’s economy surprised everyone by growing last quarter

Japan?s economy grew unexpectedly in the March quarter, bucking economists? expectations for a mild contraction.

www.businessinsider.com.au

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