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Japan April-June GDP growth estimated at 0.8 pct

  • August 2, 2021
  • , Jiji Press , 10:04 p.m.
  • English Press

Tokyo, Aug. 2 (Jiji Press)–Japan’s real gross domestic product in April-June is believed to have grown 0.2 pct from the previous quarter, or at an annual rate of 0.8 pct, according to 12 private think tanks’ latest estimates.

 

Despite a turnaround from the previous quarter’s GDP decline of annualized 3.8 pct in price-adjusted real terms, the estimated growth rate is low reflecting sluggish personal consumption under the third coronavirus state of emergency.

 

Specifically, personal consumption, a main engine for economic growth, is estimated to have dropped for the second consecutive quarter, by 0.1 pct on average.

 

Spending on services shrank in particular, after the state of emergency eventually covered 10 of the country’ 47 prefectures, according to the Dai-ichi Life Research Institute.

 

Meanwhile, capital expenditures are estimated to have turned up 1.9 pct.

 

Exports are seen to have expanded 2.7 pct, thanks to economic recovery abroad. But foreign demand’s net contribution to GDP is believed to have shrunk with imports increasing an estimated 3.3 pct.

 

The Cabinet Office is set to announce preliminary GDP data for April-June on Aug. 16.

 

Analysts also forecast that the country will continue to post slow GDP growth in July-September, citing the government’s declaration of a fourth state of emergency.

 

Six prefectures including Tokyo have now been put under the fresh state of emergency, effective until the end of August.

 

According to the NLI Research Institute’s estimate, the real growth rate for the current quarter will be around 1 pct.

 

Takahide Kiuchi, executive economist at the Nomura Research Institute <4307>, predicted that losses stemming from the ongoing emergency restrictions will total 2.19 trillion yen.

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