8 December 2022 | Other

Japan’s GDP contracted less than expected

According to recent data, gross domestic product of Japan declined over a three-month period to the end of September. The decline turned out to be less than it was expected, as GDP contracted an annualized 0.8% in comparison with the previous period. The initial estimation of the contraction was 1.2%, while economists expected GDP to decline by 1%.

The negative effect of the weakening yen was reduced by higher exports, while the volume of capital spending by firms didn’t change.

The economy downturn was additionally softened by a buildup of inventories. However, this fact also signals insufficient demand for the products. Consumption levels were also lower than expected, which is linked to a worsened situation with the spread of COVID in summer and acceleration of inflation.

Recent data didn’t show enough improvement to wash away officials’ concerns over the economic stability of the country. The year 2023 is approaching, along with its gloomy prospects and possible recession in major foreign markets.

At the same time, according to economists’ estimates, Japanese economy might be supported by private sector spending and services consumption this quarter. Consumer spending has already been fueled by unsatisfied demand left from the summer wave of COVID. But still, this growth might be limited by the recent outburst of the infection.

Company MarketCheese
Period: 01.05.2025 Expectation: 1000 pips
GBPUSD to test level of 1.34 again
25 April 2025 55
Brent sell
Period: 01.05.2025 Expectation: 660 pips
Trade uncertainty and excess OPEC+ supply are dragging down Brent
25 April 2025 40
Period: 29.04.2025 Expectation: 600 pips
USDCAD to head towards 1.39400 after rebounding from 1.38200
25 April 2025 34
Period: 02.05.2025 Expectation: 1669 pips
AUDCAD gains on potential easing of trade tensions between US and China
25 April 2025 35
Period: 30.04.2025 Expectation: 12000 pips
ETHUSD set to test upper boundary of downtrend channel
24 April 2025 90
Period: 25.04.2025 Expectation: 500 pips
AUDUSD to fall to 0.63000
24 April 2025 45
Go to forecasts