Japan GDP Growth Forecast to Slow to 0.3% in Third Quarter
A Reuters poll points to weaker consumption and external demand offsetting a recovery in capital spending ahead of official data next week.
Key takeaways
- Economists expect Japan's annualized GDP growth to slow to 0.3% in July-September.
- Private consumption is forecast to contract for the first time in seven quarters.
Japan’s economy is expected to have grown at an annualized 0.3% in the third quarter, down from 1.4% in the previous quarter, a Reuters poll of 16 economists showed. The forecast would mark a fourth straight quarterly expansion.
Capital spending is expected to rise 1.5%, while private consumption is forecast to fall 0.2%, its first contraction in seven quarters. Net external demand is expected to subtract 0.4 percentage points from growth, after adding 0.5 points in the previous quarter.
The Bank of Japan will consider economic growth in deciding whether to raise interest rates further. Many analysts expect its next rate increase as soon as next month. Japan is due to release preliminary third-quarter GDP data on November 16.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
