Japan's GDP in the third quarter unexpectedly decreased by 0.3%

According to preliminary data, Japan's GDP in the third quarter of 2022 unexpectedly decreased by 0.3% compared to the three months of the previous quarter. Analysts note that this was the first reduction in the indicator since the third quarter of 2021. Forecasts, on the contrary, assumed an increase in GDP by 0.3%. 

According to the revised data, the Japanese economy grew by 1.1% in the second quarter, and not by 0.9%, as previously announced.

On an annualized basis, GDP in the third quarter fell by 1.2%, while the consensus forecast assumed growth of 1.1%. In the second quarter, the economy grew by 4.6% y/y against the previously reported 3.5%.

The main reasons for the slowdown in economic growth, experts called the increase in prices, which negatively affects the spending of the country's population, as well as the weakening of the yen against world currencies.

Consumer spending in the period from July to September increased by 0.3%, business investment increased by 1.5%, while government spending did not change.

Exports increased by 1.9% in the third quarter. Imports, on the other hand, showed the most significant rise in the last seven quarters and amounted to 5.2%.