Media ININ Economy We Trust
Media IN Tokyo, May 20, 2019
Japan’s economy grew at an annualized pace of 2.1 percent in the January-March period, the second straight quarter of expansion, despite sluggish personal consumption and exports, the government said on Monday
GDP is the total value of goods and services produced domestically.
Gross Domestic Product (GDP) growth was stronger than the 1.6 percent expansion in the previous quarter, according to preliminary data released by the cabinet office. On a quarterly basis, the world’s third biggest economy’s GDP rose 0.5 percent in the three months ended march 31 from the October-December period.
”Export growth has slowed partly due to China’s economic slowdown, and production activities remained weak,” Economy and Fiscal policy minister Toshimitsu Motegi told a press conference after the cabinet released GDP data.
But Motegi underlined the improvement in the employment and income environments and high levels of corporate profits, saying that ”the fundamentals supporting domestic demand remain solid.”
Personal consumption, which accounts for more than half of Japan’s GDP, fell 0.1 percent, reflecting sluggish sales of cars and clothes. Corporate capital spending, another major contributor to growth, also declined 0.3 percent as firms were reluctant to make the investment amid China’s economic situation. In regard to foreign demand, exports slid 2.4 percent amid China’s economic slowdown.
