Japan GDP Expected to Slow to 0.3 Percent Growth
Japan's economy is projected to expand by an annualized 0.3 percent in the third quarter, marking a sharp slowdown from the previous period.
Economists expect the economy of Japan to have expanded by an annualized 0.3 percent during the third quarter from July to September. According to a Reuters poll of 16 economists, this figure represents a significant slowdown from the 1.4 percent expansion recorded in the April-June period, although it would constitute a fourth consecutive quarterly increase.
Growth was hindered by a projected 0.2 percent decline in private consumption, which would be the first contraction in seven quarters. Net external demand also negatively impacted the economy, likely subtracting 0.4 percentage points from the gross domestic product. These declines were partially offset by a 1.5 percent rebound in capital expenditure.
The Bank of Japan will evaluate these growth figures to determine the timing of future interest rate hikes, with some analysts predicting a move as early as next month. The Government of Japan is scheduled to release official preliminary third-quarter GDP data on November 16.
