Econintersect: The revised GDP estimate from Japan blew away both the preliminary estimate last month (2.4%) and the consensus market forecast (2.7%). The quarter-over-quarter increase was nearly 1%, which was 3.9% annualized. Japan’s current account also reported a surplus for the tenth consecutive month in April. A significant contribution came from the weak yen boosted income from overseas investments and increased the value of exports. Continued lower oil prices also helped. The current account surplus stood at ¥1.3 trillion ($14.3 billion). According to the Financial Times, a significant part of the increase was “thanks to a huge change in the estimates for business spending.”
The change in the first quarter estimate (first graph below) was not enough for Japan’s GDP to rise above the level it had in the second half of 2013 and after the first quarter of 2014 (see second graph below).
- Japan Q1 GDP expanded 3.9% annually: revised data (Business Standard, 08 June 2015)
- Japan Q1 GDP revised up to annualised 3.9% growth: Govt (The Straights Times, 08 June 2015)
- Japan Q1 GDP growth revised up to 3.9% annualised (Financial Times, 08 June 2015)
- Japan GDP (Trading Economics, 08 June 2015)